Form 4: Caterpillar Inc. Executive Denise C. Johnson Reports Acquisition of Phantom Stock Units

Group President Denise C. Johnson reports acquiring 27 phantom stock units of Caterpillar Inc. at $351.16 per share, bringing her total holdings to 28,690 units.

Summary

• On August 26, 2024, Denise C. Johnson, Group President of Caterpillar Inc., reported acquiring 27 phantom stock units.
• The acquisition includes 14 shares credited under the Supplemental Deferred Compensation Plan at $351.16 per share and 13 shares contributed under the plan for no consideration.
• Johnson's total holdings now amount to 28,690 phantom stock units, including accrued dividends.
• These phantom stock units will be settled in cash upon Johnson's retirement or separation from service.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive as it reflects standard executive compensation practices and insider alignment with company performance.

Positives

• The acquisition of phantom stock units aligns the executive's interests with the company's performance.
• The deferred compensation plan provides a long-term incentive for the executive.

Future Outlook

The phantom stock units will be settled in cash upon the reporting person's retirement or separation from service.

Industry Context

Executive compensation through stock and phantom stock units is a common practice in publicly traded companies to align management's interests with shareholder value.

Comparison to Industry Standards

• Caterpillar's executive compensation practices, including the use of phantom stock units, are generally in line with those of other large industrial companies such as Deere & Company (DE) and Komatsu (KMTUY).
• These companies often use a mix of salary, bonus, stock options, and deferred compensation to incentivize and retain key executives.
• The specific terms and conditions of these plans can vary widely, but the overall goal is to align executive compensation with company performance and shareholder returns.

Stakeholder Impact

• The acquisition of phantom stock units by a key executive can reassure shareholders that management's interests are aligned with theirs.

Key Dates