Form 4: Ralliant CTO Accrues Phantom Shares in Deferred Plan

Ralliant Corp's SVP and Chief Technology Officer, Amir A. Kazmi, reported an acquisition of 0.8 notional dividend accruals in the company's Executive Deferred Incentive Program stock fund.

Summary

• Amir A. Kazmi, SVP Chief Technology Officer of Ralliant Corp, reported a change in beneficial ownership via a Form 4 filing.
• The transaction involved the acquisition of 0.8 units in the Executive Deferred Incentive Program (EDIP) Ralliant Stock Fund on December 23, 2025.
• These units represent notional dividend accruals on phantom shares, based on Ralliant's common stock closing price of $51.6 on the transaction date.
• The notional shares settle in Ralliant's common stock on a one-to-one basis.
• Following this transaction, Mr. Kazmi beneficially owns 843.9 derivative securities in the EDIP Stock Fund.
• Voluntary contributions to the EDIP Stock Fund vest immediately at 100%.
• Issuer contributions vest 100% upon the earlier of death, retirement (after 5 years of service and age 55), or one-tenth per year after five years of participation, in accordance with the EDIP.

Sentiment

Score: 6

Explanation: The filing reports a routine executive compensation accrual, which is generally positive as it aligns executive interests with shareholders, but it's not a significant market-moving event on its own.

Positives

• Increased beneficial ownership by a key executive (SVP Chief Technology Officer) can signal confidence in the company's future.
• The Executive Deferred Incentive Program aligns executive interests with shareholder value through stock-based compensation.

Risks

• The value of the accrued phantom shares is tied to the future performance of Ralliant Corp's common stock, exposing the executive to market risk.
• Vesting conditions for issuer contributions mean the full benefit is not immediately realized and depends on continued employment and company performance.

Future Outlook

The filing itself does not contain explicit forward-looking statements or guidance beyond the nature of the deferred compensation plan.

Industry Context

This is a routine insider transaction filing. Executive deferred compensation programs are common in publicly traded companies to retain talent and align executive incentives with long-term shareholder value. The specific details reflect Ralliant Corp's compensation structure for its senior leadership.

Comparison to Industry Standards

• Executive Deferred Incentive Programs (EDIPs) are standard practice across many industries, including technology and finance, for senior executives.
• The vesting schedule, which includes immediate vesting for voluntary contributions and performance/tenure-based vesting for issuer contributions, is typical for such plans, balancing executive liquidity with long-term commitment.
• The use of phantom shares tied to common stock performance is a common mechanism to provide equity-like compensation without immediately issuing shares.

Stakeholder Impact

• Shareholders: The transaction indicates continued executive alignment with shareholder interests through equity-based compensation.
• Employees: No direct impact on general employees, but it highlights the company's executive compensation structure.

Next Steps

• Future Form 4 filings will report subsequent changes in Mr. Kazmi's beneficial ownership, including further accruals, vesting events, or dispositions of these or other securities.

Key Dates

Recommendation

This Form 4 filing reports a routine accrual of phantom shares under an executive deferred incentive program for Ralliant Corp's CTO. While it indicates continued executive alignment with company performance, it is a standard compensation event and does not provide new material information to warrant a change in investment recommendation. The transaction itself is too small to be price-sensitive or to alter the fundamental outlook for the company.

Keywords

Ralliant Corp, RAL, Form 4, Insider Trading, Executive Compensation, Phantom Shares, Deferred Incentive Program, Amir A. Kazmi, CTO, Stock Fund, Beneficial Ownership