Form 4: Xylem Inc. Executive Claudia S. Toussaint Reports Stock and Option Awards

Claudia S. Toussaint, SVP, CPSO of Xylem Inc., reports the acquisition of restricted stock units and non-qualified stock options.

Summary

• On March 5, 2025, Claudia S. Toussaint, SVP, CPSO of Xylem Inc., was granted 2,024 shares of common stock at a price of $129.67.
• These shares are in the form of restricted stock units that will vest in equal installments on March 5, 2026, March 5, 2027, and March 5, 2028.
• Additionally, Toussaint was granted 7,104 non-qualified stock options with an exercise price of $129.67, also vesting in one-third increments on March 5, 2026, March 5, 2027, and March 5, 2028.
• Following these transactions, Toussaint directly owns 10,136 shares of common stock and indirectly owns 35,474 shares through the Claudia S. Toussaint Revocable Trust.
• She also directly owns 7,104 non-qualified stock options.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive as it reflects standard executive compensation practices, indicating confidence in the company's future performance. The vesting schedule promotes long-term alignment.

Positives

• The grant of stock options and restricted stock units aligns the executive's interests with those of the shareholders.
• The vesting schedule encourages long-term commitment from the executive.

Future Outlook

The document does not contain specific forward-looking statements beyond the vesting schedule of the granted securities.

Industry Context

Stock and option awards are a common practice in executive compensation packages within publicly traded companies to incentivize performance and align management's interests with those of shareholders.

Comparison to Industry Standards

• Executive compensation packages, including stock options and restricted stock units, are standard practice among publicly traded companies like Xylem.
• Companies such as Danaher, Roper Technologies, and Honeywell also utilize similar equity-based compensation to incentivize their executives.
• The vesting schedules, typically spanning three to five years, are also consistent with industry norms to promote long-term commitment.

Stakeholder Impact

• The stock and option awards can positively impact shareholders by aligning executive interests with company performance.
• Employees may view the awards as a positive sign of the company's commitment to its leadership.

Key Dates