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

Director Sreelakshmi Kolli reports acquiring phantom stock units in Zimmer Biomet through a deferred compensation plan.

Summary

• On September 30, 2024, Sreelakshmi Kolli, a director of Zimmer Biomet Holdings, Inc., acquired 144.998 phantom stock units.
• These units were accrued under the Zimmer Biomet Holdings, Inc. Deferred Compensation Plan for Non-Employee Directors.
• The conversion price of each phantom stock unit is 1-for-1, meaning each unit can be converted into one share of Zimmer Biomet common stock.
• The units will be settled in shares of company common stock within sixty days after Kolli's service as a director ends.
• Following the reported transaction, Kolli beneficially owns 3,925.366 phantom stock units, which includes 7.803 units accrued on July 31, 2024, through dividend reinvestment.

Sentiment

Score: 7

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

Positives

• The acquisition of phantom stock units aligns the director's interests with those of the shareholders.
• The deferred compensation plan allows for long-term investment in the company's success.

Future Outlook

The phantom stock units will be settled in shares of Zimmer Biomet common stock within sixty days after Kolli's service as a director ends.

Industry Context

Directors often receive stock-based compensation to align their interests with shareholders, a common practice in the healthcare industry.

Comparison to Industry Standards

• Stock-based compensation for directors is a common practice across the medical device industry.
• Companies like Stryker (SYK) and Medtronic (MDT) also utilize deferred compensation plans and stock options for their board members.
• The specific amount and type of equity compensation can vary based on company size, performance, and individual director roles.

Stakeholder Impact

• The acquisition of phantom stock units by a director aligns their interests with those of the shareholders, potentially leading to decisions that benefit the company's long-term performance.
• The deferred compensation plan can help attract and retain qualified directors.

Key Dates