Form 4: Johnson & Johnson Director Acquires Deferred Share Units
SEC Form 4 Filing
Director Paula A. Johnson acquired deferred share units in Johnson & Johnson under the company's Amended and Restated Deferred Fee Plan for Directors.
Summary
- On April 25, 2024, Paula A. Johnson, 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 termination of Johnson's directorship, with each DSU representing the fair market value of one share of Common Stock on the settlement date.
- Following the transaction, Johnson beneficially owns 2,858.548 deferred share units, which includes dividend equivalent rights accrued on the DSUs.
Sentiment
Score: 7
Explanation: The document reflects a routine transaction related to director compensation, indicating stability and alignment of interests. It is neither overwhelmingly positive nor negative.
Future Outlook
The deferred share units will be settled in cash upon termination of the Reporting Person's directorship.
Industry Context
This filing reflects standard compensation practices for directors of publicly traded companies, often involving deferred share units to align director interests with long-term shareholder value.
Comparison to Industry Standards
- Deferred share unit grants are a common form of compensation for directors in large, publicly traded companies like Johnson & Johnson.
- Companies such as Pfizer (PFE) and Merck (MRK) also utilize similar deferred compensation plans for their board members.
- The specific number of units granted and the terms of the plan are generally aligned with industry benchmarks for director compensation at companies of similar size and complexity.
Stakeholder Impact
- The transaction has a minor positive impact on shareholders by aligning the director's interests with the long-term performance of the company.
- The transaction has a minor positive impact on the director as it is part of their compensation.
Key Dates
| Date | Description |
|---|---|
| 04/25/2024 | Date of transaction: Grant of Deferred Share Units |
| 04/29/2024 | Date of signature for the Form 4 filing |
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