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

Director Robert Hagemann reports acquisition of phantom stock units in Zimmer Biomet Holdings, Inc. under the Deferred Compensation Plan.

Summary

• Robert Hagemann, a director of Zimmer Biomet Holdings, Inc., reported the acquisition of phantom stock units on June 30, 2024.
• The transaction involved 311.117 phantom stock units acquired under the Zimmer Biomet Holdings, Inc. Deferred Compensation Plan for Non-Employee Directors.
• The conversion or exercise price of each derivative security is 1-for-1.
• These units are to be settled in cash in five annual installments, starting within sixty days after the end of the calendar year in which Hagemann's service as a director ceases.
• Following the reported transaction, Hagemann beneficially owns 28,477.657 shares of common stock directly.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. It reflects standard executive compensation practices and insider ownership, which can align management interests with shareholders.

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 director compensation and holdings, common in publicly traded companies like Zimmer Biomet. It provides transparency to investors regarding the alignment of director interests with shareholder value.

Comparison to Industry Standards

• Deferred compensation plans for non-employee directors are a common practice among publicly traded companies, including Zimmer Biomet's competitors such as Stryker Corporation (SYK) and Johnson & Johnson (JNJ).
• These plans often involve the granting of phantom stock units or similar instruments that vest over time and are settled in cash or stock upon the director's departure.
• The specific terms of these plans, such as the vesting schedule and settlement method, can vary depending on the company's compensation policies and practices.

Stakeholder Impact

• The acquisition of phantom stock units aligns the director's interests with those of the shareholders, as the value of the units is tied to the company's performance.
• The deferred compensation plan may impact the company's cash flow in the future when the units are settled in cash.

Key Dates