Form 4: Thermo Fisher Scientific Inc.: Director Jennifer M. Johnson Reports Acquisition of Phantom Stock Units

Director Jennifer M. Johnson reports acquisition of phantom stock units in Thermo Fisher Scientific Inc. under the Deferred Compensation Plan for Directors.

Summary

• On June 29, 2024, Jennifer M. Johnson, a director of Thermo Fisher Scientific Inc., acquired 56.51 phantom stock units.
• These units were credited to her account under the Issuer's Deferred Compensation Plan for Directors at a price of $553.00 per unit.
• The phantom stock units are convertible into common stock on a 1-for-1 basis and are distributable as stock upon cessation of director service or a change of control.
• Following the transaction, Johnson directly owns 224.1 derivative securities.
• Johnson is also the President, Chief Executive Officer, and a Director of Franklin Resources, Inc., and disclaims beneficial ownership of Thermo Fisher Scientific securities held by Franklin Templeton subsidiaries.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive as it reflects a director's participation in a deferred compensation plan, indicating confidence in the company's future.

Positives

• The acquisition of phantom stock units by a director signals confidence in the company's future performance.
• The Deferred Compensation Plan for Directors aligns the interests of directors with those of shareholders.

Future Outlook

The shares are distributable as stock upon cessation of director service (for any reason) or a change of control.

Management Comments

• Reporting Person disclaims beneficial ownership of such securities managed by Franklin Templeton subsidiaries.

Industry Context

This filing is a routine disclosure of stock unit acquisition by a company director, which is common in publicly traded companies as part of their executive compensation plans.

Comparison to Industry Standards

• Deferred compensation plans for directors are a common practice among publicly traded companies, including Thermo Fisher Scientific, to align director compensation with long-term shareholder value.
• Companies like Danaher Corporation and Agilent Technologies, which are also in the scientific instruments and services industry, often use similar compensation structures for their directors.

Stakeholder Impact

• The acquisition of phantom stock units by a director can positively influence shareholder sentiment, as it aligns the director's interests with those of the shareholders.

Key Dates