Form 4: Zurn Elkay Director Schooler Boosts Stake

Rosemary Schooler, a director at Zurn Elkay Water Solutions Corp, acquired 503 shares of common stock as part of her director compensation.

Summary

• Rosemary Schooler, a director of Zurn Elkay Water Solutions Corp (ZWS), acquired 503 shares of common stock.
• The transaction occurred on January 15, 2026, at a price of $47.27 per share.
• This acquisition was a payment of director fees in restricted stock units (RSUs).
• The RSUs vested immediately but will not be paid out until six months after Ms. Schooler ceases service as a director.
• Following this transaction, Ms. Schooler beneficially owns 58,344 shares of ZWS common stock.

Sentiment

Score: 6

Explanation: Slightly positive due to a director increasing their stake, even if through compensation, which can signal confidence. However, it's a routine transaction, so the impact is limited.

Positives

• A director increasing their beneficial ownership, even through compensation, can signal confidence in the company's future.
• The use of restricted stock units aligns the director's interests with long-term shareholder value.

Future Outlook

The restricted stock units, while vested immediately, are not paid out until six months after the reporting person's cessation of service as a director, indicating a future payout event tied to her tenure.

Management Comments

• Payment of director fees in restricted stock units, which vested immediately, but is not paid out until six months after the Reporting Person's cessation of service as a director.

Industry Context

Director compensation often includes equity components like restricted stock units to align the interests of board members with those of shareholders, promoting long-term value creation. This is a standard practice across many publicly traded companies.

Comparison to Industry Standards

• The use of restricted stock units (RSUs) for director compensation is a common practice in corporate governance, aligning director incentives with long-term shareholder value, similar to practices at companies like Xylem Inc. or A. O. Smith Corporation in the water solutions sector.
• The immediate vesting with a deferred payout upon cessation of service is a typical structure designed to retain directors and ensure continued commitment.

Corporate Governance

Related Party Transactions

• The acquisition of shares by a director as compensation constitutes a related party transaction, as it involves a transaction between the company and a member of its board.

Stakeholder Impact

• Shareholders: Potentially positive, as it shows a director's continued equity stake and alignment with long-term company performance.

Next Steps

• Payout of the restricted stock units will occur six months after Rosemary Schooler ceases her service as a director.

Key Dates

Keywords

Zurn Elkay Water Solutions, ZWS, Rosemary Schooler, Director Compensation, Insider Trading, Form 4, Restricted Stock Units, Equity Acquisition