Form 4: Stanley Black & Decker Director Susan K. Carter Reports Changes in Beneficial Ownership

Director Susan K. Carter reports acquisition of common stock and deferred shares through dividend equivalents and reinvestments in Stanley Black & Decker's compensation plans.

Summary

• On June 18, 2024, Susan K. Carter, a director of Stanley Black & Decker, reported changes in her beneficial ownership of the company's stock.
• Carter acquired 20.5391 shares of common stock at a price of $84.395 per share through dividend equivalents under the RSU Deferral Plan.
• She also acquired 370.2826 deferred shares through the Deferred Compensation Plan as a result of deferring quarterly director fees, each share entitling her to one share of common stock upon settlement.
• Additionally, Carter acquired 5.673 deferred shares through the reinvestment of dividends paid on deferred shares under the Deferred Compensation Plan.
• Following these transactions, Carter beneficially owns 2,202.5391 shares of common stock and 969.0005 deferred shares.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The transactions reflect standard compensation practices and alignment of director interests with shareholders. There are no indications of negative developments.

Positives

• The director's participation in the dividend reinvestment and deferred compensation plans demonstrates a continued investment in the company's future.
• Acquisition of shares through dividend equivalents and reinvestments does not require additional capital outlay from the director.

Future Outlook

The deferred shares will be settled in common stock upon the director's departure from the Board, according to the terms of the compensation plans.

Industry Context

Directors' stock ownership and participation in company compensation plans are common practices to align their interests with those of shareholders. These transactions are routinely disclosed via Form 4 filings.

Comparison to Industry Standards

• Director compensation packages often include deferred stock and dividend reinvestment plans to incentivize long-term value creation, similar to practices at companies like Illinois Tool Works (ITW) and 3M (MMM).
• The structure of Stanley Black & Decker's deferred compensation plan, with settlement upon departure from the board, aligns with standard practices observed at companies such as Emerson Electric Co. (EMR) and Eaton Corporation (ETN).

Stakeholder Impact

• The transactions have a minor positive impact on shareholders by aligning the director's interests with the company's long-term performance.

Key Dates