Form 4: Air Products Director Lisa Ann Davis Reports Acquisition of Phantom Stock Units

Lisa Ann Davis, a director at Air Products & Chemicals, Inc., reported the acquisition of phantom stock units under the company's Deferred Compensation Program for Directors.

Summary

• On June 30, 2024, Lisa Ann Davis, a director at Air Products & Chemicals, Inc., acquired 20.0048 phantom stock units.
• These units were acquired under the Air Products Stock Account of the issuer's Deferred Compensation Program for Directors, as part of the Company's Long-Term Incentive Plan.
• The price of the phantom stock is $263.07 per unit.
• Following the transaction, Davis directly owns 2,993.2658 phantom stock units.
• These units are payable in shares of common stock after Davis's service on the Board of Directors ends, with payment options including a lump sum or up to ten installments.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, indicating a stable and well-managed company. The use of phantom stock units suggests a long-term focus and alignment of interests.

Positives

• The acquisition of phantom stock units aligns the director's interests with the long-term performance of the company.
• The Deferred Compensation Program for Directors provides a tax-efficient way for directors to accumulate company stock.

Future Outlook

The phantom stock units will be converted to shares of common stock at a future date elected by the reporting person, generally after service on the Company's Board of Directors ends.

Industry Context

This filing is a routine disclosure related to director compensation and stock ownership, common among publicly traded companies. It reflects standard practices for aligning director interests with shareholder value through equity-based compensation.

Comparison to Industry Standards

• Deferred compensation plans and phantom stock awards are common practices among large publicly traded companies like Air Products & Chemicals to incentivize and retain board members.
• Companies such as Linde, Sherwin-Williams, and PPG Industries also utilize similar compensation strategies for their directors.
• The specific terms of the plan, such as the vesting schedule and payout options, are generally comparable to industry benchmarks for executive and director compensation.

Stakeholder Impact

• The acquisition of phantom stock units by a director aligns their interests with those of shareholders, potentially leading to decisions that benefit the company's long-term performance.
• Employees may view this as a positive sign, indicating that the company values its leadership and is committed to its future.

Key Dates