Form 4: Ralliant SVP Acquires Phantom Shares in Deferred Incentive Plan

Ralliant Corp's SVP Chief People Officer, Karen M. Bick, acquired 5.8 notional shares through a dividend accrual in the Executive Deferred Incentive Program.

Summary

• Karen M. Bick, SVP Chief People Officer of Ralliant Corp, reported a transaction on March 23, 2026.
• The transaction involved the acquisition of 5.8 notional shares through dividend accruals in the Executive Deferred Incentive Program (EDIP) Stock Fund.
• These notional shares are based on the closing price of Ralliant's common stock on the NYSE, which was $42.29 on the transaction date.
• The notional shares settle in Ralliant's common stock on a one-to-one basis.
• Following this transaction, Karen M. Bick beneficially owns 4,932.3 derivative securities (phantom shares).
• Voluntary contributions to the EDIP Stock Fund vest immediately, while issuer contributions vest 100% upon death, retirement (after 5 years service and age 55), or one-tenth per year after five years of participation.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a neutral to slightly positive event, reflecting routine executive compensation and alignment, but not a direct open market purchase indicating strong immediate conviction.

Positives

• The acquisition of additional phantom shares indicates continued participation and alignment of management interests with shareholder value through the Executive Deferred Incentive Program.
• The EDIP structure encourages long-term retention and performance by linking vesting to service and retirement conditions.

Negatives

• No direct open market stock purchase, which might signal less immediate conviction compared to an outright equity acquisition.

Risks

• The value of the notional shares is tied to the future performance of Ralliant Corp's common stock, exposing the deferred compensation to market fluctuations.
• Vesting conditions for issuer contributions mean that the full benefit of these shares is not immediately realized and depends on continued employment or specific retirement criteria.

Future Outlook

The Executive Deferred Incentive Program (EDIP) is designed to align executive interests with long-term company performance and shareholder value, with vesting conditions tied to continued service and retirement, suggesting a focus on long-term retention of key personnel.

Management Comments

• The reported securities are notional dividend accruals on phantom shares in the Issuer stock fund (the 'EDIP Stock Fund') under the Issuer's Executive Deferred Incentive Program (the 'EDIP').
• The notional shares settle in shares of the Issuer's common stock on a one-to-one basis.
• The Reporting Person immediately vests in 100% of each voluntary contribution to the EDIP Stock Fund.
• The Reporting Person will vest in all contributions to the EDIP Stock Fund by the Issuer as follows: 100% upon the earlier of the Reporting Person's death, or upon retirement following at least five years of service with the Issuer and reaching the age of 55, or, if earlier, one-tenth per year of participation following five years of participation, in each case in accordance with the EDIP.

Industry Context

StockSavvy.ai notes that executive deferred compensation plans, particularly those tied to company stock performance, are a common practice across industries to incentivize long-term commitment and align management's financial interests with those of shareholders. This type of plan is typical for a company like Ralliant Corp, aiming to retain senior talent.

Comparison to Industry Standards

• Many large corporations, such as Apple Inc. and Microsoft Corp., utilize similar deferred compensation plans that include phantom stock or restricted stock units to retain key executives and align their incentives with long-term shareholder value creation.
• The vesting schedule, which includes immediate vesting for voluntary contributions and performance/time-based vesting for company contributions, is consistent with best practices observed in executive compensation across the S&P 500, balancing executive liquidity with long-term commitment.
• The one-to-one settlement of notional shares into common stock is a standard mechanism for such plans, ensuring direct exposure to the company's equity performance.

Stakeholder Impact

• Shareholders: The EDIP aligns executive interests with shareholder value over the long term, potentially fostering stable leadership.
• Employees: The program demonstrates a structured approach to executive compensation and retention, which can contribute to overall company stability.

Next Steps

• Continued participation in the Executive Deferred Incentive Program.
• Future vesting of issuer contributions based on service, retirement, or participation duration.
• Settlement of vested phantom shares into common stock upon termination of employment.

Key Dates

Recommendation

This Form 4 filing details a routine executive compensation event involving the accrual of phantom shares through a deferred incentive program. It does not indicate any significant change in the company's fundamentals or strategic direction that would warrant a 'buy' or 'sell' recommendation. The transaction is an expected part of executive compensation and aligns management's long-term interests with shareholders, supporting a 'hold' stance for existing investors.

Keywords

Ralliant Corp, RAL, Form 4, Insider Trading, Executive Compensation, Deferred Incentive Program, Phantom Shares, Dividend Accrual, Karen M. Bick, SVP Chief People Officer