Form 4: Ralliant Executive Accrues Phantom Shares

Ralliant Corp's SVP Chief People Officer, Karen M. Bick, accrued 4.4 phantom shares through a notional dividend accrual in the Executive Deferred Incentive Program.

Summary

• Karen M. Bick, SVP Chief People Officer of Ralliant Corp, reported a transaction on September 23, 2025.
• The transaction involved the acquisition of 4.4 phantom shares in the Executive Deferred Incentive Program (EDIP) Stock Fund.
• These phantom shares represent notional dividend accruals, based on the closing price of Ralliant's common stock on the NYSE, which was $44.06 per share.
• The phantom shares settle on a one-to-one basis into Ralliant's common stock.
• Following this transaction, Karen M. Bick beneficially owns a total of 3,877.6 phantom shares in the EDIP Stock Fund.
• The total beneficially owned amount includes phantom shares that were converted from Fortive's Executive Deferred Incentive Program.

Sentiment

Score: 6

Explanation: The filing reports a routine accrual of phantom shares as part of an executive deferred incentive program, indicating ongoing executive compensation and alignment with company performance, which is generally a neutral to slightly positive signal for executive retention and motivation.

Positives

• Accrual of phantom shares indicates ongoing participation in the company's executive incentive program.
• The Executive Deferred Incentive Program (EDIP) aligns executive interests with shareholder value through stock-based compensation, promoting long-term commitment.

Negatives

• The transaction represents a routine accrual from a deferred incentive program rather than a direct open-market purchase of common stock.

Risks

• The value of the phantom shares is directly tied to the Issuer's common stock price, exposing the holder to market fluctuations.
• Vesting conditions for Issuer contributions to the EDIP Stock Fund mean the full benefit is not immediately realized and is contingent on continued service or specific events such as death, retirement, or years of participation.

Future Outlook

The Executive Deferred Incentive Program (EDIP) structure encourages long-term executive retention and aligns management performance with shareholder value through its stock-based compensation mechanism and vesting schedules.

Management Comments

• The Executive Deferred Incentive Program (EDIP) is designed to align executive interests with shareholder value, with phantom shares settling in common stock on a one-to-one basis.

Industry Context

Stock-based deferred compensation plans, such as Ralliant's EDIP, are a common practice in publicly traded companies across various industries. These programs are widely used to incentivize executives, foster long-term commitment, and align their financial interests with the company's sustained performance and shareholder returns.

Comparison to Industry Standards

• Deferred incentive programs with stock-based components are standard practice across many industries for executive compensation, similar to those seen at companies like Microsoft (MSFT) or Apple (AAPL) which often use restricted stock units (RSUs) or phantom stock for executive retention and performance incentives.
• The vesting schedule for issuer contributions (e.g., 100% upon death, retirement after five years of service and age 55, or one-tenth per year after five years of participation) is a common mechanism to encourage long-term commitment and discourage short-term decision-making, comparable to vesting schedules in plans at companies like General Electric (GE) or IBM (IBM).

Stakeholder Impact

• Shareholders: Executive compensation through stock-based incentives aligns management interests with shareholder value creation.
• Employees: The EDIP provides a framework for executive compensation and retention, potentially influencing overall employee morale and perception of leadership commitment.

Next Steps

• Continued participation in the Executive Deferred Incentive Program (EDIP) by Karen M. Bick.
• Future accruals or vesting events as per the EDIP terms.
• Settlement of vested phantom shares into Ralliant common stock upon termination of employment or other specified events.

Key Dates

Recommendation

This Form 4 reports a routine accrual of phantom shares under an executive deferred incentive program. It does not contain any new material information regarding the company's financial performance, strategic direction, or operational outlook that would warrant a change in investment recommendation. It primarily reflects ongoing executive compensation practices designed for retention and alignment.

Keywords

Ralliant Corp, RAL, Form 4, insider transaction, executive compensation, phantom shares, EDIP, deferred incentive program, Karen M. Bick, stock fund, dividend accrual