Form 4: Avnet Director Maddock Reports Acquisition of Phantom Stock Units

Director Ernest E. Maddock reports acquisition of phantom stock units convertible to Avnet common stock through a deferred compensation plan.

Summary

• On January 2, 2025, Ernest E. Maddock, a director of Avnet Inc., reported the acquisition of 3,442 phantom stock units (PSUs).
• These PSUs are equivalent to shares of Avnet's common stock and will be settled in common stock upon Maddock's departure from the board or a change of control of Avnet.
• The PSUs were issued under Avnet's Deferred Compensation Plan for Outside Directors, representing a deferral of 100% of the annual stock grant.
• The director's annual stock grant was based on $52.28 per share.
• Following the transaction, Maddock directly owns 5,265 shares of Avnet common stock and 11,735 phantom stock units.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The filing reflects a director's continued investment in the company through a standard compensation mechanism.

Positives

• The acquisition of phantom stock units demonstrates the director's continued investment in Avnet's future.

Future Outlook

The phantom stock units will be settled in Avnet's common stock after the reporting person leaves the Issuer's Board or upon change of control of the Issuer.

Industry Context

Form 4 filings are routine disclosures required by the SEC to provide transparency into the transactions of company insiders, such as directors and officers. This filing indicates a director's participation in a deferred compensation plan, which is a common practice among publicly traded companies.

Comparison to Industry Standards

• Deferred compensation plans for directors are a common practice in publicly traded companies, often involving the issuance of phantom stock units or similar instruments.
• The specific terms of these plans, such as vesting schedules and settlement conditions, can vary widely across companies and are often benchmarked against industry peers to attract and retain qualified board members.
• Companies like Texas Instruments (TXN) and Intel (INTC) also utilize deferred compensation plans for their directors, with similar structures involving stock-based awards that vest over time.

Key Dates