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. under the company's deferred compensation plan.

Summary

• On March 31, 2025, Sreelakshmi Kolli, a director of Zimmer Biomet Holdings, Inc., acquired 138.876 phantom stock units under the company's Deferred Compensation Plan for Non-Employee Directors.
• The phantom stock units were priced at $112.51 each and are convertible to common stock on a 1-for-1 basis.
• These units will be settled in shares of company common stock within sixty days after Kolli ceases to be a director.
• Following the transaction, Kolli directly owns 4,229.314 derivative securities, which includes 8.579 phantom stock units accrued on January 31, 2025, under the dividend reinvestment provision of the plan.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, which is generally viewed neutrally. The acquisition of stock units aligns director interests with shareholders, which is a positive but expected practice.

Positives

• The acquisition of phantom stock units aligns the director's interests with those of the shareholders.
• The Deferred Compensation Plan allows directors to accumulate company stock over time.

Future Outlook

The phantom stock units will be settled in shares of company common stock within sixty days after Kolli ceases to be a director.

Industry Context

Directors receiving stock-based compensation is a common practice in publicly traded companies to align their interests with shareholders.

Comparison to Industry Standards

• Stock-based compensation for directors is a standard practice across the industry, including companies like Stryker (SYK) and Johnson & Johnson (JNJ).
• Deferred compensation plans are also common, allowing directors to defer income and receive it in the form of company stock at a later date.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders by aligning director interests with company performance.

Key Dates

Keywords

Zimmer Biomet, Director, Phantom Stock Units, Deferred Compensation Plan, Form 4, Sreelakshmi Kolli, ZBH