Form 4: Scotts Miracle-Gro CEO James Hagedorn Reports Acquisition of Phantom Stock

James Hagedorn, Chairman, CEO, and President of Scotts Miracle-Gro, reports acquiring phantom stock representing the right to receive common shares or their cash value.

Summary

• On October 28, 2024, James Hagedorn, the Chairman, CEO, and President of Scotts Miracle-Gro, reported a transaction involving phantom stock.
• He acquired 1,023.359 shares of phantom stock, each representing the right to receive one common share of Scotts Miracle-Gro or its cash value.
• The price per share for the phantom stock is $88.27.
• Following the reported transaction, Hagedorn directly owns 203,158.573 common shares.
• The phantom stock is payable in cash following the termination of Hagedorn's employment with Scotts Miracle-Gro, and he may transfer his phantom stock into an alternative investment at any time.

Sentiment

Score: 6

Explanation: The document is a neutral regulatory filing. The acquisition of phantom stock could be viewed slightly positively as it aligns management's interests with shareholders, but it's a routine occurrence.

Positives

• The acquisition of phantom stock could be seen as a positive sign, indicating confidence in the company's future performance.

Industry Context

This filing is a routine disclosure related to executive compensation and holdings, common in publicly traded companies. It provides transparency regarding the alignment of management's interests with those of shareholders.

Comparison to Industry Standards

• Phantom stock grants are a common form of executive compensation, used by companies like Scotts Miracle-Gro to align executive incentives with shareholder value.
• Similar to restricted stock units (RSUs) or stock options, phantom stock provides executives with a future claim on company equity, but without the immediate transfer of shares.
• Companies like Home Depot and Lowe's also utilize equity-based compensation plans for their executives, reflecting industry-standard practices.

Stakeholder Impact

• The acquisition of phantom stock by the CEO aligns his interests with those of shareholders, potentially encouraging decisions that increase shareholder value.

Key Dates