Form 4: AbbVie Director Thomas C. Freyman Reports Changes in Beneficial Ownership

Director Thomas C. Freyman reports acquisition and disposal of AbbVie shares, including restricted stock units and shares held in trust.

Summary

• On May 3, 2024, Thomas C. Freyman, a director of AbbVie Inc., reported changes in his beneficial ownership of AbbVie common stock.
• He acquired 1,322 shares of common stock through restricted stock units awarded under the AbbVie Amended and Restated 2013 Incentive Stock Program.
• These restricted stock units will be paid in shares of AbbVie common stock on a one-to-one basis upon separation from service, death, or a change in control.
• Freyman also reported indirect beneficial ownership of 4,000 shares held by his spouse in a revocable trust, and 1,941 shares each held by his spouse as trustee for his two sons in irrevocable trusts.
• He disclaims beneficial ownership of the shares held in the trusts.
• The report includes a power of attorney, dated July 10, 2023, authorizing Perry C. Siatis, Emily A. Weith, and T.O. Odutayo to act as his attorneys-in-fact for SEC filings.

Sentiment

Score: 6

Explanation: The sentiment is neutral as the document primarily reports routine transactions and holdings. The acquisition of restricted stock units is a positive sign, but the overall impact is not significantly positive or negative.

Positives

• The acquisition of restricted stock units suggests continued alignment of the director's interests with the company's performance.

Future Outlook

The restricted stock units will be paid out in AbbVie common stock upon certain events like separation from service or a change in control.

Industry Context

Form 4 filings are routine disclosures for corporate insiders and provide transparency into their transactions in company stock. This filing indicates changes in Freyman's holdings, which are typical for directors receiving stock-based compensation.

Comparison to Industry Standards

• Directors at comparable pharmaceutical companies like Pfizer (PFE) and Johnson & Johnson (JNJ) also routinely file Form 4s to report transactions in their company's stock.
• The use of restricted stock units as part of executive compensation is a common practice in the industry to align management's interests with shareholder value.

Stakeholder Impact

• The disclosure provides transparency to shareholders regarding the director's holdings and transactions in AbbVie stock.

Key Dates