Form 4: UL Solutions Executive Reports Accrual of Restricted Stock Units and Dividend Equivalent Rights

Linda S. Chapin, EVP & CHRO of UL Solutions Inc., reported the accrual of dividend equivalent rights on restricted stock units as part of her compensation, aligning executive interests with shareholder value.

Summary

• Linda S. Chapin, Executive Vice President and Chief Human Resources Officer (EVP & CHRO) of UL Solutions Inc. (ULS), filed a Form 4 reporting changes in her beneficial ownership.
• On June 9, 2025, Ms. Chapin acquired 5 Restricted Stock Units (RSUs) and associated dividend equivalent rights, with a transaction price of $0.
• Following this transaction, Ms. Chapin beneficially owns 2,906 restricted stock units and all accrued dividend equivalent rights related to one set of RSUs.
• Additionally, on the same date, she acquired another 5 Restricted Stock Units and associated dividend equivalent rights, resulting in a beneficial ownership of 2,742 restricted stock units and all accrued dividend equivalent rights for a separate set of RSUs.
• Each dividend equivalent right represents a contingent right to receive one share of UL Solutions Inc.'s Class A Common Stock.
• The dividend equivalent rights accrue on restricted stock units and vest proportionately with the underlying RSUs.
• One set of restricted stock units vests in three equal installments on the first, second, and third anniversaries of May 1, 2024.
• Another set of restricted stock units will vest in three equal installments on the first, second, and third anniversaries of April 1, 2025.

Sentiment

Score: 6

Explanation: The sentiment is neutral to slightly positive. This is a routine compensation event (RSU grant and dividend equivalent accrual) for an executive, which aligns management's interests with shareholders. It does not indicate any significant operational or financial changes, nor does it suggest a lack of confidence from the insider.

Positives

• The accrual of dividend equivalent rights and the grant of Restricted Stock Units (RSUs) are part of executive compensation, which typically aims to align the interests of the executive with those of the shareholders.
• The vesting schedule over multiple years encourages long-term commitment and performance from the executive.

Future Outlook

The document indicates future vesting events for the granted restricted stock units on the anniversaries of May 1, 2024, and April 1, 2025, over three years.

Industry Context

This filing is a routine disclosure of executive compensation in the form of equity awards, common across publicly traded companies in various industries, including the safety science and certification sector where UL Solutions operates. It does not provide broader industry trends or competitive insights.

Stakeholder Impact

• Shareholders: The equity awards align the interests of the EVP & CHRO with those of the shareholders, as the value of her compensation is tied to the company's stock performance.
• Employees: This filing pertains to executive compensation and does not directly impact the broader employee base, though it reflects the company's compensation practices for its leadership.

Next Steps

• The restricted stock units and associated dividend equivalent rights will vest in three equal installments on the first, second, and third anniversaries of May 1, 2024.
• Another set of restricted stock units and associated dividend equivalent rights will vest in three equal installments on the first, second, and third anniversaries of April 1, 2025.

Key Dates

Recommendation

Keywords

UL Solutions, ULS, Form 4, Insider Transaction, Restricted Stock Units, RSU, Executive Compensation, Dividend Equivalent Rights, Corporate Governance