Form 4: Zoetis Executive Roxanne Lagano Reports Acquisition of Phantom Stock Units

Executive Vice President Roxanne Lagano reports acquisition of phantom stock units in Zoetis Inc. through the company's Supplemental Savings Plan.

Summary

• On March 28, 2025, Roxanne Lagano, an Executive Vice President at Zoetis Inc., acquired 894.5839 phantom stock units through the Zoetis Supplemental Savings Plan.
• Each phantom stock unit represents a fraction of a phantom share of Zoetis common stock, plus a small amount of cash-equivalent investments.
• The value of each unit is determined by the market value of Zoetis common stock and the value of the cash-equivalent investments.
• The price of the common stock was $53.18.
• Following the transaction, Lagano beneficially owns 27,797.4801 phantom stock units.
• These units are settled in cash upon separation from service and can be transferred into an alternative investment fund, subject to Zoetis's limitations on timing and frequency of transfers.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to executive compensation, indicating a stable and ongoing program. The sentiment is neutral to slightly positive as it reflects continued investment in the company by an executive.

Positives

• The acquisition of phantom stock units aligns the executive's interests with the company's performance.
• The Zoetis Supplemental Savings Plan provides a mechanism for executives to accumulate wealth tied to the company's success.

Future Outlook

The document does not contain specific forward-looking statements, but the ongoing participation in the Zoetis Supplemental Savings Plan suggests continued alignment of executive compensation with company performance.

Industry Context

Executive compensation packages often include stock-based awards to align management's interests with shareholder value. Phantom stock units are a common tool used for this purpose, particularly in companies like Zoetis.

Comparison to Industry Standards

• Zoetis's use of phantom stock units in its executive compensation package is consistent with industry practices among large pharmaceutical and animal health companies.
• Companies like Elanco and Merck Animal Health also utilize similar equity-based compensation methods to incentivize their executives.
• The specific terms and conditions of these plans, such as vesting schedules and settlement methods, can vary significantly across companies.

Stakeholder Impact

• The acquisition of phantom stock units aligns the executive's interests with shareholders, potentially driving decisions that increase shareholder value.
• The Supplemental Savings Plan provides a benefit to the executive, contributing to employee retention and motivation.

Key Dates

Keywords

Zoetis, phantom stock units, executive compensation, Form 4, Lagano, ZTS, Supplemental Savings Plan