Form 4: Johnson & Johnson Director Acquires Deferred Share Units

Director Marillyn A. Hewson acquired deferred share units (DSUs) of Johnson & Johnson on June 4, 2024, under the company's Amended and Restated Deferred Fee Plan for Directors.

Summary

• On June 4, 2024, Marillyn A. Hewson, a director of Johnson & Johnson, acquired 314.6179 Deferred Share Units (DSUs) as part of the company's Amended and Restated Deferred Fee Plan for Directors.
• The DSUs were acquired for deferral of cash retainer.
• Each DSU represents the fair market value of one share of Johnson & Johnson common stock on the business day prior to the settlement date.
• The price of the acquisition was $147.85.
• Following the transaction, Ms. Hewson beneficially owns 10,573.3827 DSUs, which includes dividend equivalent rights from the Issuer's quarterly dividend.
• The DSUs are to be settled in cash upon termination of Ms. Hewson's directorship.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The acquisition of DSUs by a director is generally a positive sign, indicating confidence in the company's future. However, it's a routine transaction related to director compensation.

Positives

• The acquisition of DSUs by a director signals confidence in the company's future performance.

Future Outlook

DSUs are to be settled in cash upon termination of the Reporting Person's directorship. Each DSU represents the fair market value of one share of Common Stock on the business day prior to settlement date.

Industry Context

Director stock ownership is a common practice in publicly traded companies to align the interests of management with those of shareholders. Deferred compensation plans are also common.

Comparison to Industry Standards

• Director compensation packages often include a mix of cash, stock options, and restricted stock units (RSUs) or deferred share units (DSUs).
• The specific mix varies depending on the company's size, industry, and compensation philosophy.
• Companies like Pfizer (PFE) and Merck (MRK) also utilize similar deferred compensation plans for their directors.

Stakeholder Impact

• The acquisition of DSUs by a director aligns the director's interests with those of the shareholders, as the value of the DSUs is tied to the company's stock performance.

Key Dates