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

Group President Denise C. Johnson reported the acquisition of 15 phantom stock units of Caterpillar Inc. on May 24, 2024.

Summary

• On May 24, 2024, Denise C. Johnson, Group President of Caterpillar Inc., reported acquiring 15 phantom stock units.
• These units were acquired under the company's non-qualified deferred compensation plans.
• The acquisition includes 8 shares credited under the Supplemental Deferred Compensation Plan at $348.90 per share and 7 shares contributed to the account at no cost.
• Johnson now holds a total of 28,852 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: 6

Explanation: The sentiment is neutral. It's a routine disclosure of executive compensation. The acquisition of phantom stock units can be seen as a positive sign of confidence, but it's not a major event.

Positives

• The acquisition of phantom stock units by a high-ranking executive could be seen as a positive sign of confidence in the company's future performance.

Future Outlook

The phantom stock units will be settled for 100% cash upon the reporting person's retirement or separation from service.

Industry Context

Executive compensation, including phantom stock units, is a common practice in publicly traded companies to align the interests of management with those of shareholders. This filing provides transparency into the compensation structure of a key executive at Caterpillar Inc.

Comparison to Industry Standards

• Phantom stock units are a common form of deferred compensation used by companies like Caterpillar to incentivize executives.
• Companies such as Deere & Company (DE) and Komatsu (KMTUY) also utilize similar compensation strategies to retain and motivate key personnel.
• The specific terms and conditions of these plans, such as vesting schedules and settlement methods, can vary significantly between companies.

Stakeholder Impact

• The acquisition of phantom stock units by a key executive could have a minor positive impact on shareholder confidence.

Key Dates