Form 4: AT&T Director William E. Kennard Reports Acquisition of Deferred Stock Units

Director William E. Kennard reports acquisition of deferred stock units in AT&T Inc. through a non-employee director plan.

Summary

• On July 31, 2024, William E. Kennard, a director of AT&T Inc., acquired 1,675.4431 deferred stock units.
• The acquisition was made pursuant to the AT&T Inc. Non-Employee Director Stock and Deferral Plan.
• Each unit will be paid out in cash equal to the value of one share of AT&T common stock after Kennard ceases to be a director.
• The price of the acquisition was $19.25.
• Following the transaction, Kennard beneficially owns 117,899.8753 derivative securities indirectly through a benefit plan.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, indicating stability and alignment of interests. It is neither overwhelmingly positive nor negative.

Positives

• The acquisition of deferred stock units aligns the director's interests with the long-term performance of AT&T.
• The Non-Employee Director Stock and Deferral Plan is a common practice to incentivize and retain board members.

Future Outlook

The deferred stock units will be paid out in cash after the reporting person ceases to be a director, at times elected by the director.

Industry Context

Form 4 filings are standard practice for reporting changes in beneficial ownership by company insiders, such as directors and officers. This filing indicates routine compensation and alignment of interests.

Comparison to Industry Standards

• Deferred stock units are a common form of compensation for non-employee directors at large publicly traded companies like AT&T.
• Companies like Verizon and Comcast also utilize similar stock-based compensation plans for their board members to align their interests with shareholders.
• The specific number of units granted and the terms of the deferral plan are generally in line with industry practices for companies of AT&T's size and complexity.

Stakeholder Impact

• The acquisition of deferred stock units by a director can positively influence shareholder confidence by aligning management's interests with those of the shareholders.

Key Dates