Form 4: Johnson & Johnson Director Nadja West Reports Acquisition of Deferred Share Units

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

Summary

• Nadja West, a director of Johnson & Johnson, reported the acquisition of 1,385.697 Deferred Share Units (DSUs) on April 25, 2024.
• These DSUs were granted under the Issuer's Amended and Restated Deferred Fee Plan for Directors.
• The DSUs will be settled in cash upon termination of West's directorship, with each DSU representing the fair market value of one share of Common Stock on the settlement date.
• West also holds 5,093.682 DSUs, which includes dividend equivalent rights accrued from the Issuer's quarterly dividend.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The filing reflects standard compensation practices and aligns director interests with the company's long-term performance. There are no indications of negative events or concerns.

Positives

• The acquisition of Deferred Share Units aligns the director's interests with the long-term performance of the company.
• Dividend equivalent rights on DSUs provide additional value to the director.

Future Outlook

The Deferred Share Units will be settled in cash upon termination of the Reporting Person's directorship, reflecting the value of Johnson & Johnson's common stock at that time.

Industry Context

Deferred compensation plans for directors are a common practice in publicly traded companies to align their interests with those of shareholders and incentivize long-term value creation.

Comparison to Industry Standards

• Many large corporations, including those in the pharmaceutical and healthcare sectors like Pfizer (PFE) and Merck (MRK), utilize deferred compensation plans for their directors.
• These plans often involve granting stock options, restricted stock units, or deferred share units that vest over time or upon retirement, similar to Johnson & Johnson's approach.
• The specific terms and conditions of these plans, such as the vesting schedule, settlement method (cash or stock), and dividend equivalent rights, can vary significantly between companies.

Stakeholder Impact

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

Key Dates