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

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

Summary

• On December 31, 2024, Kolli Sreelakshmi, a director of Zimmer Biomet Holdings, Inc., acquired 147.782 phantom stock units under the company's Deferred Compensation Plan for Non-Employee Directors.
• The price of the phantom stock units was $105.73.
• These units will be settled in shares of Zimmer Biomet common stock within 60 days after Kolli Sreelakshmi ceases to be a director.
• Following the transaction, Kolli Sreelakshmi beneficially owns 4,081.859 phantom stock units, which includes 8.711 units accrued on October 31, 2024, through dividend reinvestment.

Sentiment

Score: 7

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

Future Outlook

The phantom stock units will be settled in shares of Company common stock within sixty days after cessation of the reporting person's service as a Director.

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

• Director compensation packages often include stock options, restricted stock units, or phantom stock units to align their interests with shareholders.
• Companies like Medtronic, Stryker, and Johnson & Johnson also utilize similar compensation methods for their directors.
• The specifics of these plans vary, but the general goal is to incentivize long-term value creation.

Stakeholder Impact

• The acquisition of phantom stock units by a director can positively influence shareholder confidence by aligning management's interests with the company's long-term success.
• Employees may view this as a positive sign of leadership commitment to the organization.

Key Dates