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

Director Robert Hagemann reports acquiring phantom stock units in Zimmer Biomet Holdings, Inc. through a deferred compensation plan.

Summary

• Robert Hagemann, a director of Zimmer Biomet Holdings, Inc., reported the acquisition of 313.196 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 in five annual installments after Hagemann's service as a director ends.
• Hagemann directly owns 28,851.426 phantom stock units, which includes 60.573 units accrued on July 31, 2024, through dividend reinvestment.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive as it reflects standard executive compensation practices and aligns director interests with the company's 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 for tax-efficient accumulation of wealth for non-employee directors.

Future Outlook

The phantom stock units will be settled in cash in five annual installments commencing within sixty days after the end of the calendar year in which the cessation of the reporting person's service as a Director occurs.

Industry Context

This filing is a routine disclosure related to executive compensation and is common among publicly traded companies. It reflects the company's approach to incentivizing and retaining its directors.

Comparison to Industry Standards

• Deferred compensation plans are a common practice among large, publicly traded companies like Zimmer Biomet to attract and retain qualified non-employee directors.
• Companies such as Johnson & Johnson and Medtronic also utilize similar deferred compensation plans for their directors.
• The specific terms of these plans, such as the vesting schedule and payout structure, can vary but generally aim to align director compensation with long-term shareholder value.

Stakeholder Impact

• The acquisition of phantom stock units aligns the director's interests with shareholders, potentially driving long-term value creation.
• The deferred compensation plan can help attract and retain qualified directors, benefiting the company and its stakeholders.

Key Dates