Form 4: Johnson & Johnson Director Hubert Joly Acquires Deferred Share Units

Director Hubert Joly acquired 1,316 Deferred Share Units (DSUs) of Johnson & Johnson on April 24, 2025, under the company's Amended and Restated Deferred Fee Plan for Directors.

Summary

• On April 24, 2025, Hubert Joly, a director of Johnson & Johnson, acquired 1,316 Deferred Share Units (DSUs) under the company's Amended and Restated Deferred Fee Plan for Directors.
• These DSUs will be settled in cash upon the termination of Joly'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, Joly beneficially owns 7,986.907 derivative securities, which includes dividend equivalent rights accrued on the DSUs.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The acquisition of DSUs by a director is a routine event and indicates alignment with shareholder interests. There are no negative implications.

Positives

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

Future Outlook

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

Industry Context

Director compensation in the form of deferred share units is a common practice among large corporations to align the interests of directors with those of shareholders.

Comparison to Industry Standards

• Deferred Share Units (DSUs) are a common form of equity 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 terms of these plans, such as vesting schedules and settlement methods, can vary, but the underlying goal is to align director interests with long-term shareholder value.

Stakeholder Impact

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

Key Dates

Keywords

Deferred Share Units, Director Compensation, Form 4, Insider Transaction, Johnson & Johnson, JNJ, Hubert Joly