Form 4: Avnet Director Virginia Henkels Reports Acquisition of Phantom Stock Units

Director Virginia Henkels reports acquiring phantom stock units in Avnet, Inc. through a deferred compensation plan.

Summary

• On January 2, 2025, Virginia Henkels, a director of Avnet, Inc., acquired 3,442 phantom stock units (PSUs).
• These PSUs were issued pursuant to the Avnet, Inc. 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 a price of $52.28 per share.
• Each PSU is equivalent to one share of Avnet's common stock and will be settled in common stock upon the director leaving the Board or a change of control of the Issuer.
• Following the transaction, Henkels directly owns 3,442 derivative securities.

Sentiment

Score: 7

Explanation: The document indicates a director's continued investment in the company through a deferred compensation plan, which is generally viewed positively. The sentiment is neutral to slightly positive.

Positives

• The acquisition of phantom stock units demonstrates the director's continued investment in the company's future.
• The Deferred Compensation Plan allows directors to align their interests with those of the shareholders.

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

Directors often receive stock-based compensation to align their interests with shareholders. Deferred compensation plans are a common way to provide this compensation while also offering tax benefits.

Comparison to Industry Standards

• Stock grants to board members are a common practice across publicly traded companies.
• The specific amount and vesting schedule can vary widely based on company size, industry, and individual director roles.
• Companies like Texas Instruments (TXN) and Arrow Electronics (ARW), which are comparable to Avnet in the electronics distribution industry, also utilize stock-based compensation for their directors.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders as it aligns the director's interests with the company's long-term performance.

Key Dates