Form 4: Johnson & Johnson Executive Decker Receives Stock Options and Restricted Share Units

Robert J. Decker, VP Corporate Controller at Johnson & Johnson, reports the acquisition of stock options and restricted share units under the company's Long-Term Incentive Plan.

Summary

• Robert J. Decker, VP Corporate Controller of Johnson & Johnson, filed a Form 4 detailing changes in beneficial ownership.
• On February 15, 2025, Decker was awarded 8,357 employee stock options with an exercise price of $156.15.
• These options vest in three equal annual installments starting on the first anniversary of the grant date and expire on February 15, 2035.
• Decker also received 1,031 restricted share units (RSUs) that vest in three equal annual installments beginning on the first anniversary of the grant date.
• The RSUs convert into shares of common stock on a one-for-one basis upon vesting.
• Following these transactions, Decker directly owns 8,357 derivative securities and 1,031 shares of common stock.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive as it reflects standard executive compensation practices. The grants incentivize the executive and align interests with shareholders.

Positives

• The grant of stock options and RSUs aligns Decker's interests with those of Johnson & Johnson's shareholders.
• The vesting schedule of the stock options and RSUs encourages long-term commitment from Decker.

Future Outlook

The document does not contain specific forward-looking statements beyond the vesting schedules of the stock options and RSUs.

Industry Context

Executive compensation through stock options and RSUs is a common practice in the pharmaceutical industry to incentivize performance and align executive interests with shareholder value.

Comparison to Industry Standards

• Companies like Pfizer (PFE) and Merck (MRK) also utilize stock options and RSUs as part of their executive compensation packages.
• The vesting schedules and grant sizes are generally comparable to industry norms for executives at similar levels within large pharmaceutical companies.
• The specific terms of the grants, such as the exercise price and vesting schedule, are likely determined by Johnson & Johnson's compensation committee based on performance metrics and market benchmarks.

Stakeholder Impact

• Shareholders may view the grants positively as they align executive interests with long-term company performance.
• Employees may see the grants as a positive sign of the company's commitment to its leadership.

Key Dates

Keywords

Form 4, Johnson & Johnson, JNJ, Robert J. Decker, Stock Options, Restricted Share Units, RSUs, Beneficial Ownership, Long-Term Incentive Plan, Vesting