Form 4: Zimmer Biomet Director Louis Shapiro Accrues Additional Phantom Stock Units

Zimmer Biomet Holdings, Inc. Director Louis Shapiro has accrued 150.916 additional phantom stock units under the company's deferred compensation plan, bringing his total beneficial ownership to 2,197.03 units.

Summary

• Louis Shapiro, a Director of Zimmer Biomet Holdings, Inc. (ZBH), acquired 150.916 phantom stock units.
• The transaction occurred on June 30, 2025.
• These units were accrued under the Zimmer Biomet Holdings, Inc. Deferred Compensation Plan for Non-Employee Directors.
• The conversion or exercise price of these derivative securities is 1-for-1, with a value of $91.11 per unit.
• Following this transaction, Louis Shapiro beneficially owns 2,197.03 phantom stock units.
• The units are to be settled in shares of Company common stock within sixty days after the reporting person's service as a Director ceases.

Sentiment

Score: 7

Explanation: The transaction is a routine compensation accrual for a director, which generally indicates continued alignment of interests. It's not a direct open-market purchase, but it adds to the director's stake, which is mildly positive. No negative implications are present.

Positives

• Director Louis Shapiro increased his beneficial ownership of phantom stock units, aligning his interests further with shareholders.
• The accrual is part of a structured deferred compensation plan for non-employee directors, indicating a standard compensation practice.

Negatives

• No explicit negatives are present in this Form 4 filing, as it primarily reports a routine compensation-related transaction.

Risks

• No specific risks are mentioned in this Form 4 filing.

Future Outlook

The phantom stock units are structured to be settled in shares of Zimmer Biomet Holdings, Inc. common stock within sixty days after Louis Shapiro ceases his service as a Director.

Industry Context

This Form 4 filing details a routine insider transaction related to director compensation within the medical technology and orthopedic industry. Such deferred compensation plans are common mechanisms for aligning the interests of non-employee directors with long-term shareholder value in publicly traded companies like Zimmer Biomet Holdings, Inc.

Comparison to Industry Standards

• The accrual of phantom stock units as part of a deferred compensation plan for non-employee directors is a common practice across various industries, including medical devices.
• Companies like Stryker Corporation (SYK) and Johnson & Johnson (JNJ), also prominent in the medical technology sector, utilize similar equity-based compensation structures to incentivize and retain their board members, aligning their interests with long-term company performance and shareholder returns.
• The 1-for-1 conversion ratio and settlement upon cessation of service are standard features of such plans.

Related Party Transactions

• Louis Shapiro, a Director of Zimmer Biomet Holdings, Inc., acquired phantom stock units from the company as part of his compensation, which constitutes a related party transaction.

Stakeholder Impact

• Shareholders: The transaction increases Director Louis Shapiro's beneficial ownership, potentially aligning his interests more closely with long-term shareholder value.
• Employees: No direct impact on employees is indicated by this filing.
• Customers: No direct impact on customers is indicated by this filing.
• Suppliers: No direct impact on suppliers is indicated by this filing.
• Creditors: No direct impact on creditors is indicated by this filing.

Next Steps

• The phantom stock units will be settled in shares of Zimmer Biomet Holdings, Inc. common stock within sixty days after Louis Shapiro ceases his service as a Director.

Key Dates

Recommendation

Keywords

Zimmer Biomet Holdings, ZBH, Louis Shapiro, Form 4, SEC filing, insider transaction, phantom stock units, deferred compensation, director compensation, beneficial ownership