Form 4: Air Products Director Acquires Phantom Stock Units Through Deferred Compensation Plan

Director David H Y Ho acquired 244.1723 phantom stock units in Air Products & Chemicals, Inc. through the company's deferred compensation program.

Summary

• Director David H Y Ho acquired 244.1723 phantom stock units in Air Products & Chemicals, Inc. on December 31, 2024.
• These units were acquired through the company's Deferred Compensation Program for Directors, under the Long-Term Incentive Plan.
• The phantom stock units are payable in the form of common stock shares, equal to the number of units, at a time elected by the reporting person, generally after their service on the Board of Directors ends.
• The units can be paid in a lump sum or up to ten installments, as elected by the reporting person in advance.
• The price of the underlying common stock at the time of the transaction was $288.69.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, which is generally viewed neutrally 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 plan allows for flexible payout options for the director.

Future Outlook

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

Industry Context

This type of transaction is common for directors of publicly traded companies as part of their compensation and long-term incentive plans.

Comparison to Industry Standards

• Deferred compensation plans, including phantom stock units, are a standard practice for compensating directors in large publicly traded 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 to align director interests with shareholder value.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders as it aligns director interests with the long-term performance of the company.

Key Dates

Keywords

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