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

Air Products & Chemicals, Inc. Director Alfred Stern acquired 84.046 phantom stock units on June 30, 2025, under the company's deferred compensation program.

Summary

• Alfred Stern, a Director of Air Products & Chemicals, Inc. (APD), acquired 84.046 phantom stock units.
• The acquisition occurred on June 30, 2025, as part of a scheduled transaction.
• These units were obtained through the Air Products Stock Account of the company's Deferred Compensation Program for Directors, which is part of the Long-Term Incentive Plan.
• Following this transaction, Alfred Stern beneficially owns a total of 631.7386 phantom stock units directly.
• The phantom stock units are convertible into an equal number of common stock shares, payable generally after the director's service on the Board ends, either in a lump sum or up to ten installments as elected by the reporting person.
• The price of the derivative security (phantom stock) is listed as $282.35, which corresponds to the value of the underlying common stock.

Sentiment

Score: 6

Explanation: Slightly positive as it indicates director alignment with shareholder interests through equity acquisition, albeit a routine one under a compensation plan.

Positives

• The acquisition of phantom stock units by a director aligns their interests with shareholders, indicating confidence in the company's long-term performance.
• Participation in a deferred compensation program for directors is a standard practice for attracting and retaining experienced board members.

Future Outlook

NA

Industry Context

This transaction is a routine insider filing, common across industries for directors participating in deferred compensation plans, reflecting standard corporate governance and executive compensation practices.

Comparison to Industry Standards

• The use of phantom stock units as part of a deferred compensation program for directors is a common practice among large publicly traded companies, including those in the industrial gas and chemicals sector like Air Products & Chemicals, Inc.
• This mechanism aligns director incentives with long-term shareholder value creation, similar to practices at peers such as Linde plc or DuPont de Nemours, Inc., which also utilize equity-based compensation for their boards.
• The specific number of units acquired (84.046) is relatively small in the context of the company's overall outstanding shares but represents a standard periodic accrual under such plans.

Corporate Governance

Related Party Transactions

• The acquisition of phantom stock units by a director under the company's Deferred Compensation Program for Directors can be considered a related party transaction, as it involves compensation provided by the company to a member of its board.

Stakeholder Impact

• Shareholders: The acquisition of phantom stock units by a director generally signals confidence in the company's future and aligns the director's financial interests with those of shareholders, potentially fostering long-term value creation.

Next Steps

• Phantom stock units will be converted into common stock shares and paid out after the director's service on the Board ends, as elected by the reporting person.

Key Dates

Keywords

Air Products & Chemicals, APD, Alfred Stern, Director, Phantom Stock, Deferred Compensation, Insider Trading, SEC Form 4, Executive Compensation, Long-Term Incentive Plan