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

Director Michael J. Farrell reports acquisition of phantom stock units in Zimmer Biomet Holdings, Inc. under the deferred compensation plan.

Summary

• Michael J. Farrell, a director of Zimmer Biomet Holdings, Inc., reported the acquisition of 301.596 phantom stock units on September 30, 2024.
• These units were accrued under the Zimmer Biomet Holdings, Inc. Deferred Compensation Plan for Non-Employee Directors.
• The conversion price is 1-for-1, and the units will be settled in cash within sixty days after Farrell's service as a director ends.
• Following the transaction, Farrell beneficially owns 14,918.541 phantom stock units, which includes 30.724 units accrued on July 31, 2024, under the dividend reinvestment provision of the plan.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive as it reflects standard compensation practices and aligns director interests with company performance.

Positives

• The acquisition of phantom stock units aligns the director's interests with the long-term performance of the company.
• The deferred compensation plan allows directors to accumulate wealth based on the company's success.

Future Outlook

The phantom stock units will be settled in cash within sixty days after cessation of the reporting person's service as a Director.

Industry Context

This filing is a routine disclosure related to director compensation and is common in publicly traded companies. It reflects the company's compensation strategy for its non-employee directors.

Comparison to Industry Standards

• Deferred compensation plans are a common practice among publicly traded companies to attract and retain qualified directors.
• The specifics of the plan, such as the vesting schedule and settlement terms, are typical for director compensation packages.
• Companies like Medtronic and Stryker also utilize similar deferred compensation plans for their directors.

Stakeholder Impact

• The acquisition of phantom stock units by a director can positively influence shareholder confidence by aligning management's interests with those of the shareholders.

Key Dates