Form 4: Movado COO Acquires Phantom Stock Units Under Deferred Plan

Movado Group's Chief Operating Officer, Behzad Soltani, acquired 83.4 phantom stock units as part of a deferred compensation plan.

Summary

• Behzad Soltani, Chief Operating Officer of Movado Group, Inc. (MOV), acquired 83.4 phantom stock units.
• The acquisition occurred under the issuer's Deferred Compensation Plan, with a transaction date of December 31, 2025.
• Each phantom stock unit is the economic equivalent of one share of Movado Group, Inc. common stock.
• The units are distributable in equal annual installments over 10 years following Soltani's termination of employment with Movado Group, Inc.
• The transaction was made pursuant to a Rule 10b5-1(c) plan, indicating a pre-arranged purchase or sale plan.
• Following this reported transaction, Soltani beneficially owns 2,070.69 phantom stock units.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive as it reflects a routine executive compensation event that aligns management's interests with the company's long-term performance. It does not indicate any immediate operational or financial changes, but rather a standard incentive structure.

Positives

• The acquisition of phantom stock units aligns the Chief Operating Officer's interests with the long-term performance of Movado Group, Inc.
• The transaction is part of a structured deferred compensation plan, indicating a commitment to executive retention and long-term incentives.

Future Outlook

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

Industry Context

This transaction represents a standard practice in executive compensation, where phantom stock units are used to provide long-term incentives and align management interests with shareholder value, often through deferred compensation plans.

Comparison to Industry Standards

• The use of phantom stock units as a component of executive compensation is a common practice across various industries, including consumer goods and luxury brands, similar to programs seen at companies like Fossil Group or LVMH.
• The structure of distribution over 10 years post-termination is a typical feature of deferred compensation plans designed for executive retention and long-term commitment.

Corporate Governance

Related Party Transactions

• The acquisition of phantom stock units by Behzad Soltani, the Chief Operating Officer, is an executive compensation transaction between an insider and the company.

Stakeholder Impact

• Shareholders: Minor positive impact due to increased alignment of executive incentives with long-term company performance, but no direct immediate financial impact.
• Employees: No direct impact mentioned.
• Customers: No direct impact mentioned.
• Suppliers: No direct impact mentioned.
• Creditors: No direct impact mentioned.

Next Steps

• Distribution of the phantom stock units will commence 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 reports a routine acquisition of phantom stock units by a key executive as part of a deferred compensation plan. It does not contain new information that would significantly alter the investment thesis for Movado Group, Inc. The transaction is part of standard executive compensation and indicates continued alignment of executive interests with long-term company performance, but does not warrant a change in investment recommendation.

Keywords

Movado Group, MOV, Phantom Stock, Deferred Compensation, Executive Compensation, Insider Transaction, SEC Form 4, Rule 10b5-1