Form 4: Cabot SVP Wood Acquires Phantom Stock Units

Cabot Corporation Senior Vice President Matthew Wood acquired 1.4119 phantom stock units as dividend equivalents, increasing his total beneficial ownership to 257.0493 units.

Summary

• Matthew Forster Wood, Senior Vice President of Cabot Corporation (CBT), acquired 1.4119 phantom stock units.
• The transaction occurred on September 11, 2025, and was reported on September 15, 2025.
• These phantom stock units represent dividends paid on existing units held under the Corporation's Supplemental 401(k) Plan.
• Each phantom stock unit is equivalent to one share of Common Stock.
• The price of the derivative security at the time of acquisition was $81.47 per unit.
• Following this transaction, Matthew Wood beneficially owns a total of 257.0493 phantom stock units.
• The transaction was made pursuant to a Rule 10b5-1(c) pre-arranged plan.

Sentiment

Score: 6

Explanation: The sentiment is slightly positive. While a routine transaction, it signifies continued insider ownership and participation in the company's long-term incentive plans, aligning management interests with shareholders.

Positives

• The acquisition of phantom stock units represents a routine dividend reinvestment, indicating continued participation in the company's executive compensation plan.
• An increase in insider beneficial ownership, even through a routine mechanism, generally aligns management's interests with those of shareholders.

Future Outlook

The acquired phantom stock units are to be settled upon the reporting person's retirement or other termination of employment.

Management Comments

• The phantom stock units represent dividends paid on units acquired under the Corporation's Supplemental 401(k) Plan.
• These units will be settled upon the reporting person's retirement or other termination of employment.

Industry Context

This transaction is a routine insider filing, common for executives participating in deferred compensation or supplemental retirement plans where dividend equivalents are reinvested into phantom stock units. It reflects standard executive compensation practices within publicly traded companies.

Comparison to Industry Standards

• The use of phantom stock units as a component of executive compensation, particularly for dividend reinvestment in supplemental retirement plans, is a common practice across various industries, including specialty chemicals like Cabot Corporation.
• Many companies utilize such plans to align executive long-term interests with shareholder value, similar to practices seen in companies like Dow Inc. or LyondellBasell Industries, which also offer various forms of equity-based compensation and deferred plans to their senior management.

Corporate Governance

Stakeholder Impact

• Shareholders: Minor positive impact due to increased insider alignment, as a senior executive's beneficial ownership increases, even through a routine mechanism.
• Employees: No direct impact on general employees, but reinforces the company's executive compensation structure.

Next Steps

• The phantom stock units will be settled upon Matthew Wood's retirement or other termination of employment.

Key Dates

Recommendation

This Form 4 reports a routine acquisition of phantom stock units by a Senior Vice President as part of a dividend reinvestment plan. Such a transaction is a standard component of executive compensation and does not typically signal a material change in the company's fundamental outlook or warrant a change in investment recommendation based solely on this filing. Investors should continue to evaluate Cabot Corporation based on its broader financial performance, strategic initiatives, and market conditions.

Keywords

Cabot Corporation, CBT, Matthew Wood, Insider Transaction, Form 4, Phantom Stock Units, Executive Compensation, Dividend Reinvestment, Supplemental 401(k) Plan