Form 4: UL Solutions Executive Boosts Equity Holdings

UL Solutions Inc. Executive Vice President Alex Dadakis reported the accrual of dividend equivalent rights on restricted stock units, increasing his beneficial ownership.

Summary

• Alex Dadakis, Executive Vice President and President, Testing, Inspection and Certification at UL Solutions Inc., reported an acquisition of dividend equivalent rights.
• On September 8, 2025, Dadakis acquired 32 dividend equivalent rights related to restricted stock units (RSUs).
• These 32 rights vest proportionately with RSUs that vest in three equal installments on the first, second, and third anniversaries of March 3, 2025.
• Additionally, on September 8, 2025, Dadakis acquired 10 dividend equivalent rights related to other restricted stock units.
• These 10 rights vest proportionately with RSUs that vest in three equal installments on the first, second, and third anniversaries of April 1, 2025.
• Each dividend equivalent right represents a contingent right to receive one share of UL Solutions Inc.'s Class A Common Stock.
• Following these transactions, Dadakis beneficially owns 15,978 restricted stock units and accrued dividend equivalent rights from the first batch, and 5,204 from the second batch.

Sentiment

Score: 6

Explanation: Slightly positive as it indicates executive alignment with shareholder interests through equity-based compensation, a standard and healthy practice.

Positives

• Accrual of dividend equivalent rights aligns executive interests with shareholder returns.
• Increased beneficial ownership by a key executive demonstrates confidence in the company's long-term performance.

Future Outlook

The dividend equivalent rights will vest proportionately with their underlying restricted stock units. The first set of related restricted stock units will vest in three equal installments on the first, second, and third anniversaries of March 3, 2025, while the second set will vest similarly on the anniversaries of April 1, 2025.

Industry Context

The accrual of dividend equivalent rights on restricted stock units is a common component of executive compensation packages in publicly traded companies, particularly in the testing, inspection, and certification (TIC) industry, designed to align executive incentives with long-term shareholder value creation.

Comparison to Industry Standards

• Executive compensation structures, including performance-based equity awards like RSUs and dividend equivalent rights, are standard practice across the S&P 500 and comparable companies in the TIC sector such as SGS SA, Intertek Group plc, and Bureau Veritas SA.
• The vesting schedule over multiple years is typical for long-term incentive plans, promoting executive retention and sustained performance focus, consistent with best practices observed in global industry leaders.

Stakeholder Impact

• Shareholders: The accrual of dividend equivalent rights aligns executive incentives with shareholder returns, potentially fostering long-term value creation.
• Employees: This type of equity compensation is a standard practice for senior executives, reflecting a common approach to incentivizing leadership within the company.

Next Steps

• The restricted stock units related to the first batch of dividend equivalent rights will vest in three equal installments on the first, second, and third anniversaries of March 3, 2025.
• The restricted stock units related to the second batch of dividend equivalent rights will vest in three equal installments on the first, second, and third anniversaries of April 1, 2025.

Key Dates

Keywords

UL Solutions, ULS, Alex Dadakis, Form 4, Insider Transaction, Restricted Stock Units, RSU, Dividend Equivalent Rights, Executive Compensation, Equity Holdings