Form 4: A. O. Smith Director Receives Retainer in Restricted Stock Units

Victoria M. Holt, a director at A. O. Smith Corporation, received a retainer in the form of 1,626 Restricted Stock Units (RSUs) under the company's Nonqualified Deferred Compensation Plan.

Summary

• Victoria M. Holt, a director of A. O. Smith Corporation, received 1,626 Restricted Stock Units (RSUs) as a retainer on April 9, 2024.
• The RSUs were granted under the A. O. Smith Nonqualified Deferred Compensation Plan.
• The value of the RSUs was determined based on the average of the high and low price of A. O. Smith Common Stock on April 9, 2024, which was $86.14.
• Ms. Holt has deferred the receipt of the award as permitted by the plan.
• The Restricted Stock Units receive a quarterly dividend pursuant to a dividend reinvestment feature of the A. O. Smith Nonqualified Deferred Compensation Plan.
• The total amount of the dividends received was 129 units of Restricted Stock Units.
• Following the transaction, Ms. Holt beneficially owns 8,194 derivative securities.

Sentiment

Score: 6

Explanation: The document is a routine regulatory filing related to director compensation. It doesn't contain any information that would significantly impact investor sentiment positively or negatively.

Positives

• The grant of RSUs aligns the director's interests with those of the shareholders.
• The dividend reinvestment feature allows for potential compounding of returns.

Industry Context

This is a standard practice for compensating board members and aligning their interests with the company's performance. Many companies use stock-based compensation to incentivize directors.

Comparison to Industry Standards

• Stock-based compensation for directors is a common practice among publicly traded companies.
• Companies like General Electric and Siemens also use a mix of cash and stock options to compensate their board members.
• The specific amount and type of equity compensation vary depending on the company's size, industry, and performance.

Stakeholder Impact

• The grant of RSUs to a director has a minor dilutive effect on existing shareholders.
• The compensation structure aims to align the director's interests with the long-term success of the company, which benefits shareholders.

Key Dates