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

Air Products & Chemicals, Inc. Director Bhavesh V. Patel acquired 118.7374 phantom stock units as part of the company's deferred compensation program.

Summary

• Bhavesh V. Patel, a Director of Air Products & Chemicals, Inc. (APD), acquired 118.7374 phantom stock units.
• The acquisition occurred on June 30, 2025, and was reported on July 2, 2025.
• These units were acquired under the Air Products Stock Account of the issuer's Deferred Compensation Program for Directors, which is part of the Company's Long-Term Incentive Plan.
• Phantom stock units are payable in shares of common stock equal in number to the units, generally after the reporting person's service on the Board of Directors ends.
• Following this transaction, Bhavesh V. Patel beneficially owns a total of 691.6349 phantom stock units.
• The underlying common stock price at the time of the transaction was $282.35 per share.

Sentiment

Score: 7

Explanation: The acquisition of phantom stock units by a director is a routine, positive event as it aligns the director's long-term interests with those of the shareholders through equity-based compensation.

Positives

• Director Bhavesh V. Patel increased his beneficial ownership of phantom stock units, which aligns his long-term financial interests with those of the company's shareholders.
• The acquisition is part of a structured deferred compensation program, indicating a commitment to long-term incentives for directors and stable corporate governance practices.

Risks

• The value of the phantom stock units is directly tied to the future performance of Air Products & Chemicals, Inc. common stock, exposing the holder to market fluctuations and potential declines in share price.

Future Outlook

Phantom stock units are payable in the form of shares of common stock at a time elected by the reporting person, which is generally after service on the Company's Board of Directors ends. These units may be paid in a lump sum or up to ten installments as elected in advance.

Management Comments

• The acquisition of phantom stock units by Director Bhavesh V. Patel is consistent with the company's established Deferred Compensation Program for Directors under its Long-Term Incentive Plan.

Industry Context

The acquisition of phantom stock units as part of a deferred compensation plan is a standard practice in corporate governance across various industries for publicly traded companies, aiming to align director incentives with long-term shareholder value.

Comparison to Industry Standards

• The use of phantom stock units as a component of director compensation aligns with common industry practices for executive and board remuneration, aiming to incentivize long-term performance and retention.
• Many large corporations, including peers in the industrial gas and chemical sectors, utilize similar equity-based deferred compensation plans to tie director wealth to company stock performance.

Corporate Governance

Related Party Transactions

• The acquisition of phantom stock units by Director Bhavesh V. Patel from Air Products & Chemicals, Inc. constitutes a related party transaction, specifically a component of his compensation package under an established company program.

Stakeholder Impact

• Shareholders: The acquisition of phantom stock units by a director aligns their interests with long-term shareholder value, as the value of these units is tied to the company's stock performance.

Next Steps

• Phantom stock units will be paid out in shares of common stock, generally after the reporting person's service on the Board of Directors ends, according to the elected payment schedule.

Key Dates

Recommendation

Keywords

Air Products, APD, Form 4, SEC filing, insider transaction, director compensation, phantom stock, deferred compensation, equity acquisition, corporate governance