Form 4: Air Products Director Matthew H. Paull Reports Acquisition of Phantom Stock Units

Director Matthew H. Paull reports acquisition of phantom stock units under Air Products' Deferred Compensation Program.

Summary

• On June 30, 2024, Matthew H. Paull, a director of Air Products & Chemicals, Inc., acquired 72.2527 phantom stock units.
• These units were obtained through the Air Products Stock Account of the issuer's Deferred Compensation Program for Directors, under the Company's Long-Term Incentive Plan.
• The price of the phantom stock is $263.07.
• Following the transaction, Paull directly owns 10,810.9631 phantom stock units.
• These units are payable in shares of common stock after the director's service on the Board ends, either in 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 deferred compensation suggests a long-term focus.

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 allows for flexible payout options, either in a lump sum or installments.

Future Outlook

The phantom stock units will be paid out in shares of common stock after the director's service on the Board ends, either in a lump sum or in up to ten installments, as elected by the reporting person.

Industry Context

Directors often receive stock-based compensation to align their interests with shareholders and incentivize long-term value creation. Deferred compensation programs are a common way to provide this incentive while also offering tax benefits.

Comparison to Industry Standards

• Deferred compensation plans for directors are common among publicly traded companies, including competitors like Linde and Dow.
• The specific terms of these plans, such as the vesting schedule and payout options, can vary significantly.
• Comparing the total equity compensation of Air Products' directors to that of its peers would provide a more comprehensive assessment of its competitiveness.

Stakeholder Impact

• The acquisition of phantom stock units aligns the director's interests with those of the shareholders, potentially leading to better decision-making.
• The deferred compensation program can help retain directors and incentivize them to focus on long-term value creation.

Key Dates