Form 4: Scotts Miracle-Gro Executive Awarded Dividend Equivalent Rights

Mark D. Kingdon, an executive at Scotts Miracle-Gro, has been granted dividend equivalent rights linked to his existing stock awards.

Summary

• Mark D. Kingdon, an executive at Scotts Miracle-Gro, received 48 dividend equivalent rights on December 6, 2024.
• These rights are tied to his existing Deferred Stock Units (DSUs) or Restricted Stock Units (RSUs).
• The dividend equivalent rights become exercisable proportionally with the DSUs or RSUs they are associated with.
• Each dividend equivalent right is economically equivalent to one common share of Scotts Miracle-Gro.
• The price of the common shares at the time of the grant was $75.47.

Sentiment

Score: 7

Explanation: The document reflects a routine executive compensation practice, which is generally viewed positively as it aligns executive interests with shareholder returns. There are no negative implications.

Positives

• The grant of dividend equivalent rights aligns executive compensation with shareholder returns.
• The rights provide an incentive for the executive to focus on long-term value creation.

Industry Context

The granting of dividend equivalent rights is a common practice in executive compensation, particularly for companies that issue stock-based awards.

Comparison to Industry Standards

• Many companies in the consumer goods sector, such as Proctor & Gamble and Colgate-Palmolive, use similar stock-based compensation plans including dividend equivalent rights to align executive interests with shareholder value.
• The practice of granting dividend equivalent rights is generally considered a standard practice for companies that issue stock-based awards.

Stakeholder Impact

• The grant of dividend equivalent rights aligns executive compensation with shareholder returns, potentially benefiting shareholders.
• The rights provide an incentive for the executive to focus on long-term value creation, which could benefit all stakeholders.

Key Dates

Keywords

Dividend Equivalent Rights, Scotts Miracle-Gro, Executive Compensation, Stock Awards, DSU, RSU