Form 4: Organon & Co. Director Martha E. McGarry Reports Phantom Stock Acquisition

Director Martha E. McGarry reports acquisition of phantom stock units in Organon & Co. through a dividend reinvestment and the Non-Employee Director Savings Plan.

Summary

• Martha E. McGarry, a director of Organon & Co., reported a transaction involving phantom stock units.
• On June 7, 2024, McGarry acquired 9,638.554 phantom stock units under the Organon Non-Employee Director Savings Plan.
• These units are economically equivalent to shares of Organon common stock on a 1-for-1 basis.
• The phantom stock units are payable in cash upon settlement after McGarry's termination of service as a director.
• The price of the phantom stock was $20.75.
• Following the reported transaction, McGarry beneficially owns 36,454.813 derivative securities.
• Holdings include phantom stock acquired in dividend reinvestment transactions on June 15, 2023, September 14, 2023, December 14, 2023 and March 14, 2024.

Sentiment

Score: 6

Explanation: The sentiment is neutral as it reflects a standard insider transaction. The director's participation in the savings plan is a mildly positive signal.

Positives

• The director's participation in the Non-Employee Director Savings Plan and dividend reinvestment plan demonstrates confidence in the company's future.

Industry Context

This filing is a routine disclosure related to insider transactions and provides insight into director compensation and investment in the company's stock.

Comparison to Industry Standards

• Director compensation packages often include stock or stock-based awards to align their interests with those of shareholders.
• Phantom stock units are a common form of equity compensation, particularly for non-employee directors.
• The specifics of the Organon Non-Employee Director Savings Plan would need to be compared to similar plans at peer companies to assess its competitiveness.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders as it signals director confidence in the company.

Key Dates