Form 4: Avnet Director Oleg Khaykin Reports Acquisition of Phantom Stock Units

Director Oleg Khaykin reports the acquisition of phantom stock units in Avnet, Inc. due to deferred compensation.

Summary

• Oleg Khaykin, a director of Avnet, Inc., filed a Form 4 disclosing changes in beneficial ownership.
• The report indicates that Khaykin acquired 595 phantom stock units (PSUs) on July 1, 2024, as part of a deferred compensation plan.
• These PSUs are equivalent to shares of Avnet's common stock and will be settled in common stock upon Khaykin's departure from the board or a change of control of Avnet.
• The PSUs were issued in lieu of a portion of the director's cash retainer, with the price set at $51.47 per share.
• Khaykin also reported direct ownership of 9,000 shares of Avnet common stock.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive as it reflects standard compensation practices and alignment of director interests with shareholders.

Positives

• The acquisition of phantom stock units aligns the director's interests with those of the shareholders.
• The deferred compensation plan allows directors to invest in the company's future growth.
• The director has elected to defer 100% of the director's cash retainer.

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

Deferred compensation plans are a common practice for compensating board members, aligning their interests with the long-term performance of the company. This filing is a routine disclosure related to such a plan.

Comparison to Industry Standards

• Deferred compensation plans for directors are a common practice among publicly traded companies.
• Companies like Texas Instruments and Analog Devices also utilize stock-based compensation for their board members.
• The specific terms of these plans, such as the vesting schedule and settlement conditions, can vary.

Stakeholder Impact

• The acquisition of phantom stock units aligns the director's interests with those of the shareholders, potentially encouraging decisions that benefit the company's long-term performance.
• The deferred compensation plan may impact the company's future cash flow when the units are settled.

Key Dates