Form 4: Johnson & Johnson Director Hubert Joly Reports Acquisition of Deferred Share Units

Director Hubert Joly reports acquisition of deferred share units in Johnson & Johnson under the company's Amended and Restated Deferred Fee Plan for Directors.

Summary

• On April 25, 2024, Hubert Joly, 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 Joly's directorship, with each DSU representing the fair market value of one share of Common Stock on the settlement date.
• Following the transaction, Joly beneficially owns 6,464.145 derivative securities, which includes dividend equivalent rights accrued on the DSUs.
• The price of the derivative security is $0.0000.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive as it reflects standard director compensation practices and alignment of interests with shareholders.

Positives

• The acquisition of DSUs reflects a continued alignment of the director's interests with the long-term performance of the company.

Future Outlook

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

Industry Context

This filing is a routine disclosure related to director compensation and aligns with standard practices for publicly traded companies.

Comparison to Industry Standards

• Deferred compensation plans for directors are common among large, publicly traded companies like Johnson & Johnson.
• Companies such as Pfizer (PFE) and Merck (MRK) also utilize deferred share or stock option plans as part of their director compensation packages.
• The specifics of these plans, such as vesting schedules and settlement terms, can vary, but the underlying principle is to align director compensation with long-term shareholder value.

Stakeholder Impact

• The acquisition of DSUs by a director can positively influence shareholder confidence by aligning management's interests with the company's long-term success.

Key Dates