Form 4: Zimmer Biomet Director Kolli Reports Phantom Stock Unit Grant

Zimmer Biomet Holdings, Inc. Director Sreelakshmi Kolli reported the acquisition of 172.977 phantom stock units as part of her compensation plan.

Summary

• Director Sreelakshmi Kolli acquired 172.977 phantom stock units on December 31, 2025.
• These units were accrued under the Zimmer Biomet Holdings, Inc. Deferred Compensation Plan for Non-Employee Directors.
• The phantom stock units convert to common stock on a 1-for-1 basis.
• Units are to be settled in shares of Company common stock within sixty days after cessation of the reporting person's service as a Director.
• Following this transaction, Kolli beneficially owns 5,579.523 phantom stock units.
• This total includes 12.952 phantom stock units accrued on October 31, 2025, through the dividend reinvestment provision of the same plan.

Sentiment

Score: 5

Explanation: The filing is a routine report of director compensation and does not contain information that would significantly alter the company's outlook or financial position. It is neutral in sentiment.

Positives

• Director Kolli's compensation package includes equity-linked incentives, aligning her interests with shareholders.
• The increase in phantom stock units reflects ongoing compensation for her service as a Director.

Risks

• No specific risks related to the company's operations or financial health are mentioned in this Form 4 filing.

Future Outlook

The filing does not contain specific forward-looking statements or guidance regarding the company's future performance, beyond the settlement terms of the phantom stock units upon cessation of director service.

Management Comments

• No direct quotes or paraphrased statements from company management are included in this Form 4 filing, which primarily reports an insider transaction.

Industry Context

This filing represents a routine insider transaction related to director compensation, common across publicly traded companies in the medical device and healthcare industry. Such equity-based compensation plans are standard practice to align director incentives with long-term shareholder value.

Comparison to Industry Standards

• This is a standard Form 4 filing reporting director compensation in the form of phantom stock units.
• Equity-based compensation for non-employee directors, such as phantom stock or restricted stock units, is a common practice across industries, including medical technology, to align director interests with shareholder value.
• Companies like Medtronic (MDT) and Stryker (SYK), direct competitors to Zimmer Biomet, also utilize similar equity compensation structures for their non-employee directors.

Stakeholder Impact

• Shareholders: The grant of phantom stock units aligns the director's interests with shareholders, potentially encouraging long-term value creation.
• Employees: No direct impact on employees is indicated.

Next Steps

• Phantom stock units are to be settled in shares of Company common stock within sixty days after cessation of the reporting person's service as a Director.

Key Dates

Keywords

Zimmer Biomet Holdings, ZBH, SEC Form 4, Phantom Stock Units, Director Compensation, Equity Compensation, Insider Transaction, Deferred Compensation Plan