Form 4: Xylem Inc. Executive William K. Grogan Reports Stock and Options Award

William K. Grogan, SVP & Chief Financial Officer of Xylem Inc., reports the acquisition of restricted stock units and non-qualified stock options.

Summary

• On March 5, 2025, William K. Grogan, SVP & Chief Financial Officer of Xylem Inc., reported transactions related to Xylem Inc. stock.
• Grogan acquired 4,338 shares of common stock at a price of $129.67 per share.
• These shares were awarded as restricted stock units under the Xylem 2011 Omnibus Incentive Plan, vesting in equal installments on March 5, 2026, March 5, 2027, and March 5, 2028.
• Grogan also acquired 15,223 non-qualified stock options with an exercise price of $129.67.
• These options also vest in one-third increments on March 5, 2026, March 5, 2027, and March 5, 2028.
• Following these transactions, Grogan directly owns 32,415 shares of Xylem Inc. common stock and 15,223 non-qualified stock options.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The granting of stock options and restricted stock units is a standard practice and suggests confidence in the executive's future contributions. There are no explicitly negative indicators.

Positives

• The grant of restricted stock units and stock options to a key executive like the CFO can be seen as a positive sign, aligning their interests with the long-term performance of the company.
• The vesting schedule encourages the executive's continued service and commitment to Xylem Inc.

Future Outlook

The document does not contain specific forward-looking statements about the company's future performance, but the vesting schedule of the stock and options suggests an expectation of continued service and contribution from the executive.

Industry Context

Stock and options awards are a common practice in executive compensation packages within publicly traded companies to incentivize performance and align executive interests with shareholder value.

Comparison to Industry Standards

• Executive compensation packages, including stock options and restricted stock units, are standard practice among publicly traded companies like Xylem Inc.
• Companies such as Danaher, Roper Technologies, and Advanced Drainage Systems also utilize similar equity-based compensation plans to incentivize their executives.
• The vesting schedules and grant sizes are typically benchmarked against industry peers to ensure competitiveness and retention.

Stakeholder Impact

• The stock and options awards could potentially increase shareholder value if the executive's performance leads to improved company results.
• The awards incentivize the executive to make decisions that benefit the company and its stakeholders.

Key Dates