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

Director Louis Shapiro reports acquiring phantom stock units in Zimmer Biomet Holdings, Inc. under the Deferred Compensation Plan for Non-Employee Directors.

Summary

• On March 31, 2024, Louis Shapiro, a director of Zimmer Biomet Holdings, Inc., acquired 103.578 phantom stock units.
• These units were accrued under the Zimmer Biomet Holdings, Inc. Deferred Compensation Plan for Non-Employee Directors.
• The conversion price is 1-for-1, and the units will be settled in shares of company common stock within sixty days after Shapiro's service as a director ends.
• The price of the phantom stock units is $132.75.
• Following the transaction, Shapiro directly owns 103.578 phantom stock units.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. It reflects a routine transaction related to director compensation, which is a normal part of corporate governance. The acquisition of phantom stock units suggests confidence in the company's future performance.

Positives

• The acquisition of phantom stock units aligns the director's interests with the long-term performance of the company.
• The Deferred Compensation Plan for Non-Employee Directors is a common practice to attract and retain qualified board members.

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 is typical for publicly traded companies. Deferred compensation plans are common in the industry to align director interests with shareholder value.

Comparison to Industry Standards

• Deferred compensation plans for non-employee directors are a common practice among publicly traded companies, including Zimmer Biomet's competitors such as Stryker, Johnson & Johnson (DePuy Synthes), and Medtronic.
• These plans often involve granting stock options, restricted stock units, or phantom stock units that vest over time or upon retirement, aligning director compensation with long-term shareholder value.
• The specific terms of these plans, such as vesting schedules and settlement methods, can vary significantly between companies.

Stakeholder Impact

• The acquisition of phantom stock units by a director can positively influence shareholder sentiment by aligning management's interests with those of the shareholders.

Key Dates