Form 4: Zurn Elkay Director Acquires ZWS Shares

Zurn Elkay Water Solutions Director Emma M. McTague acquired 509 shares of common stock valued at $46.67 per share as part of her director fee compensation.

Summary

• Emma M. McTague, a Director of Zurn Elkay Water Solutions Corp (ZWS), acquired 509 shares of common stock.
• The transaction occurred on October 15, 2025, at a price of $46.67 per share.
• These shares were acquired as payment for director fees in the form of restricted stock units (RSUs).
• The RSUs vested immediately but will not be paid out until six months after Ms. McTague ceases service as a director.
• Following this transaction, Ms. McTague beneficially owns 16,636 shares of Zurn Elkay Water Solutions Corp common stock.

Sentiment

Score: 6

Explanation: The transaction is a routine director compensation event, which is generally viewed as neutral to slightly positive as it increases insider ownership and aligns interests, but does not indicate extraordinary performance or strategic shifts.

Positives

• Director Emma M. McTague increased her direct beneficial ownership in Zurn Elkay Water Solutions Corp by 509 shares, demonstrating continued alignment with shareholder interests.
• The acquisition of shares as compensation aligns director incentives with the company's long-term performance.

Negatives

• No negative aspects are indicated in this routine insider transaction filing.

Risks

• The filing does not detail specific risks.

Future Outlook

The acquired restricted stock units, while immediately vested, will be paid out six months after Emma M. McTague ceases her service as a director, linking a portion of her compensation to future tenure.

Management Comments

• The acquisition of 509 shares of common stock by Director Emma M. McTague represents payment of director fees in restricted stock units.
• These restricted stock units vested immediately but are not paid out until six months after the Reporting Person's cessation of service as a director.

Industry Context

Insider transactions, such as director stock acquisitions, are common practices in publicly traded companies. They often serve to align the interests of management and directors with those of shareholders, particularly when compensation includes equity components. This specific transaction is a routine compensation event for a director.

Comparison to Industry Standards

• This transaction is consistent with standard corporate governance practices where non-employee directors receive a portion of their compensation in company equity.
• Many companies, including peers in the industrial manufacturing and water solutions sectors, utilize restricted stock units or similar equity awards to compensate directors and foster long-term alignment.
• No specific comparable companies or projects are detailed in this filing to provide a direct benchmark, but the mechanism is standard.

Corporate Governance

Related Party Transactions

• The acquisition of shares by Director Emma M. McTague as payment for director fees constitutes a related party transaction.

Stakeholder Impact

• Shareholders: Increased insider ownership by a director may be viewed positively as it aligns management interests with shareholder value.
• Employees: No direct impact on employees is indicated.
• Customers: No direct impact on customers is indicated.
• Suppliers: No direct impact on suppliers is indicated.
• Creditors: No direct impact on creditors is indicated.

Next Steps

• Payout of the restricted stock units to Emma M. McTague six months after her cessation of service as a director.

Key Dates

Recommendation

This Form 4 filing details a routine director compensation event involving the acquisition of a relatively small number of shares. While it indicates continued insider alignment, it does not present new material information that would significantly alter the investment thesis or warrant a change in recommendation based solely on this filing.

Keywords

Zurn Elkay Water Solutions, ZWS, Emma M. McTague, Director, Insider Transaction, Form 4, Stock Acquisition, Restricted Stock Units, Director Compensation, Corporate Governance