Form 4: Zimmer Biomet Director Hagemann Reports Phantom Stock Unit Acquisition

Director Robert Hagemann reports acquisition of phantom stock units in Zimmer Biomet Holdings, Inc. under deferred compensation plan.

Summary

• Robert Hagemann, a director of Zimmer Biomet Holdings, Inc., reported the acquisition of 254.237 phantom stock units on March 31, 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.
• The reporting person directly owns 27,495.71 derivative securities.
• This amount includes 51.369 phantom stock units accrued on January 31, 2024, under the dividend reinvestment provision of the plan.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive as it reflects standard executive 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 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 typical for directors of publicly traded companies. It reflects a component of director compensation tied to the company's performance.

Comparison to Industry Standards

• Deferred compensation plans are a common practice among publicly traded companies to attract and retain qualified non-employee directors.
• Phantom stock units are often used as a component of these plans, providing directors with a stake in the company's success without granting actual shares until a later date.
• The specific terms of the Zimmer Biomet plan, such as the vesting schedule and settlement method, are likely comparable to those offered by peer companies in the medical device industry.

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