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. through a deferred compensation plan.

Summary

• On March 31, 2025, Louis Shapiro, a director of Zimmer Biomet Holdings, Inc., acquired 122.211 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 60 days after Shapiro's service as a director ends.
• Following the transaction, Shapiro's direct ownership includes 1,232.76 derivative securities, including 2.133 phantom stock units accrued on January 31, 2025, under the dividend reinvestment provision of the plan.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. It reflects a routine transaction related to director compensation, indicating alignment of interests between the director and the company's long-term 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 allows directors to accumulate company stock, potentially increasing their stake over time.

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 executive compensation and is typical for publicly traded companies. It reflects a director's participation in a deferred compensation plan, which is a common practice in corporate governance.

Comparison to Industry Standards

• Deferred compensation plans are a common component of executive compensation packages in publicly traded companies, including those in the medical device industry like Stryker (SYK) and Johnson & Johnson (JNJ).
• The structure of Zimmer Biomet's plan, involving phantom stock units that convert to common stock upon cessation of service, is similar to plans offered by other large corporations to align director interests with shareholder value.

Stakeholder Impact

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

Key Dates

Keywords

Zimmer Biomet, Director, Louis Shapiro, Phantom Stock Units, Deferred Compensation Plan, Beneficial Ownership, Form 4