Form 4: Movado COO Acquires Phantom Stock Units

Movado Group's Chief Operating Officer, Behzad Soltani, acquired 105.76 phantom stock units as part of the company's deferred compensation plan.

Summary

• Behzad Soltani, Chief Operating Officer of Movado Group, Inc. (MOV), acquired 105.76 phantom stock units.
• The transaction occurred on September 30, 2025.
• The phantom stock units were acquired under the issuer's Deferred Compensation Plan.
• Each phantom stock unit is the economic equivalent of one share of Movado Group, Inc. common stock.
• Following this transaction, Behzad Soltani beneficially owns 1,987.43 phantom stock units.
• The units are distributable in equal annual installments over 10 years following the reporting person's termination of employment.

Sentiment

Score: 6

Explanation: The sentiment is moderately positive. This is a routine insider transaction related to compensation, indicating continued executive alignment with company performance. It is not a significant market-moving event but reflects stable corporate governance and compensation practices.

Positives

• The acquisition of phantom stock units aligns the Chief Operating Officer's interests with those of shareholders, as the value of these units is tied to the company's common stock performance.
• Participation in a deferred compensation plan can be viewed as a retention mechanism for key executives.

Future Outlook

The acquired phantom stock units will be distributed in equal annual installments over 10 years following the Chief Operating Officer's termination of employment with Movado Group, Inc.

Management Comments

• The transaction reflects Behzad Soltani's participation in the issuer's Deferred Compensation Plan, a standard executive compensation arrangement.

Industry Context

The acquisition of phantom stock units as part of a deferred compensation plan is a common practice in corporate executive compensation across various industries, designed to align executive incentives with long-term shareholder value and provide retention benefits.

Comparison to Industry Standards

• The use of phantom stock units in a deferred compensation plan is a standard executive compensation tool, widely adopted by public companies to provide equity-linked incentives without issuing actual shares immediately.
• The distribution schedule over 10 years post-termination is a typical long-term retention and deferred payout structure seen in similar plans across the market.

Stakeholder Impact

• Shareholders: The transaction enhances alignment between executive interests and shareholder value, as the phantom stock units' value is tied to the common stock performance.
• Employees: This transaction is specific to executive compensation and does not directly impact the broader employee base, though it reflects the company's executive retention strategies.

Next Steps

• The phantom stock units will be distributed in equal annual installments for 10 years following the reporting person's termination of employment with Movado Group, Inc.

Key Dates

Recommendation

This Form 4 filing details a routine acquisition of phantom stock units by a Chief Operating Officer as part of a deferred compensation plan. While it indicates continued executive alignment and participation in the company's long-term incentives, the relatively small number of units (105.76) and the nature of the transaction (a grant, not an open market purchase) do not provide a strong signal for a 'buy' or 'sell' recommendation. It is a standard compensation event and not expected to significantly influence the company's share price or fundamental outlook, thus warranting a 'hold' recommendation for investors.

Keywords

Movado Group, MOV, Behzad Soltani, Chief Operating Officer, Phantom Stock Units, Deferred Compensation Plan, Insider Transaction, SEC Form 4, Executive Compensation