Form 4: Zimmer Biomet Director Farrell Reports Acquisition of Phantom Stock Units

Director Michael J. Farrell reports acquiring phantom stock units in Zimmer Biomet Holdings, Inc. through a deferred compensation plan.

Summary

• On December 31, 2024, Michael J. Farrell, a director of Zimmer Biomet Holdings, Inc., acquired 307.386 phantom stock units.
• These units were accrued under the company's Deferred Compensation Plan for Non-Employee Directors.
• The conversion price is 1-for-1, and the units will be settled in cash within 60 days after Farrell's service as a director ends.
• Farrell directly owns 15,259.033 shares of common stock, including 33.106 phantom stock units accrued on October 31, 2024, through dividend reinvestment.

Sentiment

Score: 6

Explanation: The sentiment is neutral as it's a routine disclosure of stock transactions by a company insider. It doesn't inherently indicate positive or negative performance.

Positives

• The acquisition of phantom stock units by a director signals confidence in the company's future performance.

Future Outlook

The phantom stock units will be settled in cash within 60 days after Farrell's service as a director ends.

Industry Context

This filing is a routine disclosure of stock transactions by a company insider, which is common in the healthcare and medical device industry.

Comparison to Industry Standards

• Director compensation packages often include stock options, restricted stock units, or phantom stock units to align the interests of directors with those of shareholders.
• The specifics of deferred compensation plans vary widely among companies and are influenced by factors such as company size, industry, and executive compensation philosophy.
• Comparing Zimmer Biomet's plan to those of competitors like Stryker or Medtronic would require a detailed analysis of their respective compensation disclosures.

Stakeholder Impact

• The acquisition of phantom stock units by a director can be viewed positively by shareholders as it aligns the director's interests with the company's long-term success.

Key Dates