Form 4: Zoetis CEO Kristin Peck Files for Future Acquisition of Phantom Stock Units

Zoetis Inc. Chief Executive Officer Kristin Peck filed a Form 4 indicating a scheduled acquisition of 306.2714 phantom stock units on July 11, 2025, which will increase her total beneficial ownership to 57,654.5054 units.

Summary

• Kristin C. Peck, Chief Executive Officer and Director of Zoetis Inc., is scheduled to acquire 306.2714 phantom stock units.
• The scheduled transaction date for this acquisition is July 11, 2025.
• These phantom stock units are being acquired pursuant to the Zoetis Supplemental Savings Plan.
• Each phantom stock unit's value is determined by reference to the market value of Zoetis common stock and a small amount of cash-equivalent investments (approximately 5% of the total value).
• The units are settled in cash following Ms. Peck's separation from service.
• The price of the derivative security for this scheduled acquisition is $50.86 per unit.
• The underlying securities for the scheduled acquired units are 100.5225 shares of Common Stock.
• Following this scheduled acquisition, Kristin Peck is projected to directly beneficially own 57,654.5054 phantom stock units.

Sentiment

Score: 7

Explanation: The scheduled acquisition of phantom stock units by the CEO is generally a positive signal, indicating continued executive investment and alignment with company performance, though it's a routine compensation event rather than a discretionary purchase.

Positives

• The scheduled acquisition of additional phantom stock units by the CEO indicates continued alignment of management's interests with shareholder value.
• The phantom stock units are part of a supplemental savings plan, suggesting a structured long-term incentive or savings mechanism for executives.

Risks

• The value of the phantom stock units is tied to the market value of Zoetis common stock, meaning their value can fluctuate with stock price movements.
• The units are settled in cash upon separation from service, which could represent a future cash outflow for the company, though this is standard for such plans.

Future Outlook

The document does not provide a general future outlook for the company. It indicates that the phantom stock units will be settled in cash upon the reporting person's separation from service and may be transferred into an alternative investment fund, subject to company limitations.

Industry Context

This Form 4 filing is a routine disclosure of an insider transaction, common across all publicly traded companies. It reflects executive compensation and savings plans, which are standard practices in the pharmaceutical and animal health industries.

Comparison to Industry Standards

• This is a standard Form 4 filing reporting an executive's scheduled acquisition of phantom stock units.
• Such compensation structures, linking executive incentives to company stock performance, are common across large-cap companies in the animal health sector (e.g., Elanco Animal Health, Merck Animal Health) and the broader pharmaceutical industry.
• The specific terms of the supplemental savings plan are internal to Zoetis but align with typical executive deferred compensation schemes seen in comparable companies.

Corporate Governance

Related Party Transactions

• The transaction involves the CEO acquiring phantom stock units from the company as part of an employee savings plan, which is a common related-party transaction disclosed in such filings.

Stakeholder Impact

• Shareholders: The scheduled acquisition by the CEO aligns her interests with shareholders, as the value of the phantom units is tied to the company's stock performance, potentially fostering long-term value creation.

Next Steps

• The phantom stock units will be settled in cash upon the reporting person's separation from service.
• The reporting person may transfer units into an alternative investment fund at any time, provided Zoetis may limit the timing, frequency, and permissibility of such transfers.

Key Dates

Keywords

Zoetis, ZTS, SEC Form 4, Insider Transaction, Phantom Stock Units, Executive Compensation, Kristin Peck, Derivative Securities, Supplemental Savings Plan