Form 4: Ralliant CLO Reports Routine Phantom Share Accrual

Ralliant Corp's CLO, Jonathon E. Boatman, reported a routine accrual of phantom shares in the Executive Deferred Incentive Program.

Summary

• Jonathon E. Boatman, SVP Chief Legal Officer of Ralliant Corp, reported a change in beneficial ownership.
• The transaction occurred on September 23, 2025, and involved the accrual of notional dividend shares in the Executive Deferred Incentive Program (EDIP) Stock Fund.
• One notional share was accrued, based on a closing price of $44.06 per common stock share on the transaction date.
• Following this transaction, Jonathon E. Boatman beneficially owns 857.4 phantom shares in the EDIP Stock Fund.
• Voluntary contributions to the EDIP Stock Fund vest immediately (100%).
• Contributions by the Issuer vest 100% upon the earlier of the Reporting Person's death, retirement (following at least five years of service and reaching age 55), or one-tenth per year of participation after five years of participation.
• The notional shares settle in Ralliant's common stock on a one-to-one basis upon termination of employment for the vested portion.
• The total amount of phantom shares includes those converted from Fortive's Executive Deferred Incentive Program during Ralliant's separation from Fortive Corporation.

Sentiment

Score: 7

Explanation: The filing indicates a routine accrual of phantom shares for a key executive, which generally aligns management's interests with shareholder value. It is a standard compensation event and does not suggest any significant positive or negative operational or financial developments.

Positives

• Increased alignment of executive interests with shareholder value through additional phantom share accruals in the Executive Deferred Incentive Program.

Negatives

• NA

Risks

• NA

Future Outlook

NA

Industry Context

This Form 4 reports a routine executive compensation event, specifically the accrual of notional dividends on phantom shares. This is a common practice in executive deferred incentive programs across various industries, designed to align management interests with long-term shareholder value and retain key personnel.

Comparison to Industry Standards

• Executive Deferred Incentive Programs (EDIPs) with phantom stock components are standard compensation tools in publicly traded companies, particularly in sectors where Ralliant Corp might operate.
• The vesting schedule, which includes immediate vesting for voluntary contributions and performance/time-based vesting for company contributions, aligns with typical industry practices designed to retain key executives and incentivize long-term performance.
• The conversion of phantom shares from a previous parent company's plan (Fortive) into Ralliant's EDIP is a standard procedure following corporate separations, ensuring continuity of executive benefits.

Management Changes

Corporate Governance

Legal Proceedings

• NA

Related Party Transactions

• Accrual of notional dividend shares for SVP Chief Legal Officer Jonathon E. Boatman under the company's Executive Deferred Incentive Program (EDIP).

Stakeholder Impact

• Shareholders: Increased alignment of executive compensation with long-term share performance.
• Employees: No direct impact on general employees, but reflects the executive compensation structure.

Next Steps

• NA

Key Dates

Recommendation

This Form 4 reports a routine executive compensation event involving the accrual of notional dividend shares. It does not contain any material information regarding the company's operational performance, financial health, or strategic direction that would warrant a change in investment recommendation. It primarily serves to disclose insider ownership changes, which in this case are minor and expected.

Keywords

Ralliant Corp, RAL, Form 4, insider transaction, beneficial ownership, executive compensation, phantom shares, EDIP, stock fund, Jonathon E. Boatman