Form 4: Kenvue Inc. Director Larry J. Merlo Reports Acquisition of Deferred Share Units

Director Larry J. Merlo reports acquisition of 14,403 Deferred Share Units (DSUs) of Kenvue Inc. on May 23, 2024, under the Issuer's Amended and Restated Deferred Fee Plan for Directors.

Summary

• On May 23, 2024, Larry J. Merlo, a director of Kenvue Inc. [KVUE], acquired 14,403 Deferred Share Units (DSUs) under the Issuer's Amended and Restated Deferred Fee Plan for Directors.
• These DSUs will be settled in shares of Kenvue's common stock upon the termination of Merlo's directorship, with each DSU representing the right to receive one share of Common Stock on the settlement date.
• The price of the Deferred Share Units was $19.44.
• Following the reported transaction, Merlo beneficially owns 26,738.537 DSUs, which includes DSUs acquired as dividend equivalents.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The acquisition of DSUs by a director is a routine event and indicates alignment of interests between the director and shareholders. It doesn't suggest any immediate positive or negative impact but reflects ongoing commitment.

Positives

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

Future Outlook

The DSUs will be settled in shares of Kenvue's common stock upon the termination of Merlo's directorship.

Industry Context

Acquisition of deferred share units is a common practice for compensating and incentivizing board members in publicly traded companies.

Comparison to Industry Standards

• Deferred compensation plans for directors are a standard practice across publicly listed companies, including those comparable to Kenvue in the consumer goods sector, such as Procter & Gamble (PG) and Unilever (UL).
• The structure of Kenvue's plan, where DSUs convert to common stock upon termination of directorship, aligns with typical industry practices.
• The number of DSUs granted and their valuation are within the range observed for director compensation packages in similar-sized companies.

Stakeholder Impact

• The acquisition of DSUs by a director 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