Form 4: Air Products Director Acquires Phantom Stock Units

Air Products director Alfred Stern acquired 485.9382 phantom stock units through the company's deferred compensation program.

Summary

• Director Alfred Stern acquired 485.9382 phantom stock units on January 24, 2025.
• These units were acquired through the Air Products Stock Account of the issuer's Deferred Compensation Program for Directors.
• The units are part of the company's Long-Term Incentive Plan.
• The phantom stock units will be payable in the form of common stock equal to the number of units.
• The payment will occur at a time elected by the reporting person, generally after their service on the Board of Directors ends.
• The payment can be made in a lump sum or up to ten installments.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, which is generally viewed as neutral to slightly positive as it aligns director interests with the company's long-term performance.

Positives

• The acquisition of phantom stock units aligns the director's interests with the long-term performance of the company.
• The deferred compensation program is a common incentive for directors.

Future Outlook

The phantom stock units will be converted to common stock at a future date elected by the director, generally after their service on the Board of Directors ends.

Industry Context

The use of phantom stock and deferred compensation plans is a common practice for incentivizing and retaining board members in publicly traded companies.

Comparison to Industry Standards

• Deferred compensation plans, including phantom stock, are a standard practice for compensating directors in large public companies like Air Products.
• Many companies in the chemical and industrial gas sector, such as Linde and Sherwin-Williams, use similar long-term incentive plans for their board members.
• The specific terms of these plans can vary, but the general goal is to align director compensation with long-term shareholder value.

Stakeholder Impact

• The acquisition of phantom stock units aligns the director's interests with the long-term performance of the company, which is beneficial for shareholders.

Key Dates

Keywords

phantom stock, deferred compensation, director, stock units, Air Products, long-term incentive plan, equity compensation