Form 4: Johnson & Johnson Director Acquires Deferred Share Units

Mark B. McClellan, a director at Johnson & Johnson, acquired deferred share units under the company's Amended and Restated Deferred Fee Plan for Directors.

Summary

• On April 25, 2024, Mark B. McClellan, a director of Johnson & Johnson, acquired 1,385.697 deferred share units (DSUs) under the Issuer's Amended and Restated Deferred Fee Plan for Directors.
• These DSUs will be settled in cash upon the termination of McClellan's directorship, with each DSU representing the fair market value of one share of Johnson & Johnson common stock on the settlement date.
• Following the transaction, McClellan beneficially owns 17,867.715 deferred share units, which includes dividend equivalent rights accrued on previously held DSUs.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. It reflects a standard insider transaction related to director compensation, indicating alignment with company performance.

Positives

• The acquisition of deferred share units aligns the director's interests with the long-term performance of the company.
• The deferred fee plan allows directors to receive compensation in a form that is tied to the company's stock value.

Future Outlook

The deferred share units will be settled in cash upon the termination of the Reporting Person's directorship.

Industry Context

Directors often receive stock-based compensation to align their interests with shareholders. Deferred share units are a common form of equity compensation.

Comparison to Industry Standards

• Stock-based compensation for directors is a common practice across publicly traded companies.
• Companies like Pfizer (PFE) and Merck (MRK) also utilize stock options and restricted stock units as part of their director compensation packages.
• The specific terms and amounts of these awards vary based on company size, performance, and industry standards.

Stakeholder Impact

• The acquisition of deferred share units by a director can positively influence shareholder confidence by aligning management's interests with those of the shareholders.

Key Dates