Form 4: Caterpillar Inc. Executive Joseph E. Creed Reports Acquisition of Phantom Stock Units

Chief Operating Officer Joseph E. Creed reports the acquisition of 363 phantom stock units in Caterpillar Inc., settled in cash upon retirement or separation.

Summary

• On March 7, 2025, Joseph E. Creed, Chief Operating Officer of Caterpillar Inc., acquired 363 phantom stock units.
• These units are part of the company's non-qualified deferred compensation plan and are economically equivalent to one share of Caterpillar Inc. common stock each.
• The phantom stock units will be settled in cash upon Creed's retirement or separation from service.
• Following the transaction, Creed beneficially owns 9,439 phantom stock units, including accrued dividends.
• The price of the phantom stock units is $350.3.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, indicating stability and alignment of interests. It's a neutral event with a slightly positive implication for corporate governance.

Positives

• The acquisition of phantom stock units aligns the executive's interests with the long-term performance of the company.
• The deferred compensation plan provides a tax-advantaged way for the executive to save for retirement.

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 packages often include phantom stock units to align executive interests with shareholder value and long-term company performance. This is a common practice among large corporations like Caterpillar.

Comparison to Industry Standards

• Caterpillar's executive compensation practices, including the use of phantom stock units, are generally in line with those of its peers in the industrial sector, such as Deere & Company and Komatsu.
• These companies often use a mix of salary, bonus, stock options, and deferred compensation to attract and retain top talent.
• The specific terms of these compensation packages, such as the vesting schedules and settlement terms, can vary depending on the company and the executive's role.

Stakeholder Impact

• The acquisition of phantom stock units aligns the executive's interests with those of the shareholders, potentially leading to better long-term performance.
• Employees may view this as a positive sign of the company's commitment to its leadership.

Key Dates