Form 4: Ralliant CFO Adds Phantom Shares to Deferred Plan

Ralliant Corp's CFO, Neill Reynolds, acquired 1 notional share in the company's Executive Deferred Incentive Program, reflecting dividend accruals.

Summary

• Neill Reynolds, SVP Chief Financial Officer of Ralliant Corp (RAL), reported a transaction on September 23, 2025.
• The transaction involved the acquisition of 1 notional share in the Executive Deferred Incentive Program (EDIP) Ralliant Stock Fund.
• These notional shares represent dividend accruals on phantom shares within the EDIP Stock Fund.
• The value of each notional share acquired was based on the closing price of Ralliant's common stock on the NYSE, which was $44.06 on the transaction date.
• Following this transaction, Neill Reynolds beneficially owns 853 derivative securities in the EDIP Stock Fund.
• Notional shares settle in shares of Ralliant's common stock on a one-to-one basis.
• Voluntary contributions to the EDIP Stock Fund vest immediately at 100%.
• Issuer contributions vest 100% upon the earlier of the reporting person's death, retirement (after 5 years of service and age 55), or one-tenth per year of participation after five years of participation, in accordance with the EDIP.

Sentiment

Score: 6

Explanation: The sentiment is slightly positive as it indicates continued executive participation and alignment with the company's long-term incentive program, reflecting ongoing insider beneficial ownership.

Positives

• The transaction indicates continued participation by a key executive in the company's long-term incentive program, aligning management interests with shareholder value.
• The increase in beneficial ownership, even if notional, reflects an executive's ongoing stake in the company's performance.

Negatives

• The transaction represents notional dividend accruals on phantom shares rather than a direct open market purchase of common stock, which might be perceived as a less direct investment by the executive.

Risks

• No specific risks related to the company's operations, financial health, or strategic direction are disclosed in this Form 4 transaction report.

Future Outlook

The future settlement of these notional shares into Ralliant Corp's common stock is contingent upon specific vesting conditions, including the reporting person's death, retirement after five years of service and reaching age 55, or a pro-rata vesting schedule after five years of participation in the EDIP.

Management Comments

• The transaction reflects Neill Reynolds' participation in Ralliant Corp's Executive Deferred Incentive Program, indicating alignment with the company's long-term performance.

Industry Context

Executive deferred incentive programs, often involving phantom stock or notional shares, are a common practice in publicly traded companies to align executive compensation with long-term shareholder interests and to provide tax-efficient savings opportunities for executives.

Comparison to Industry Standards

• Executive deferred compensation plans, including those with phantom stock or notional share components, are standard practice across various industries for attracting and retaining senior talent.
• The vesting schedules, which often include provisions for retirement or long-term service, are typical for such programs, aiming to incentivize long-term commitment and performance.

Stakeholder Impact

• Shareholders: The transaction demonstrates continued alignment of a key executive's interests with the company's long-term performance through participation in a deferred incentive program.
• Employees: The EDIP structure provides a framework for executive compensation and retention, potentially influencing overall employee morale and perception of leadership commitment.

Next Steps

• Continued accrual of notional dividends on phantom shares in the EDIP Stock Fund.
• Vesting of issuer contributions to the EDIP Stock Fund based on the defined schedule (death, retirement, or pro-rata annual vesting).

Key Dates

Recommendation

This Form 4 reports a routine, small transaction related to executive compensation (dividend accruals on phantom shares). It does not provide new material information about the company's financial performance, strategic direction, or operational health that would warrant a change in investment recommendation. The transaction is an expected part of an executive's long-term incentive plan.

Keywords

Ralliant Corp, RAL, Form 4, Insider Transaction, Executive Compensation, Deferred Incentive Program, Phantom Stock, Neill Reynolds, CFO