Form 4: Clearwater Paper Corp Director Alexander Toeldte Acquires Phantom Stock Units

Director Alexander Toeldte acquired phantom stock units in Clearwater Paper Corp under the Deferred Compensation Plan for Directors.

Summary

• On May 10, 2024, Alexander Toeldte, a director of Clearwater Paper Corp, acquired 2,787.456 units of Phantom Common Stock at a price of $43.05 per unit.
• These phantom stock units were credited to Toeldte's account under the Clearwater Paper Corporation Deferred Compensation Plan for Directors.
• The units will be converted to cash on a 1-for-1 basis with the issuer's common stock upon termination of service with Clearwater Paper.
• These phantom stock allocations represent an annual award grant for service from May 1, 2024 through April 30, 2025 and will vest May 1, 2025.
• Following the transaction, Toeldte beneficially owns 33,721.754 units of Phantom Common Stock.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. It reflects a routine transaction that aligns director interests with company performance through deferred compensation.

Positives

• The acquisition of phantom stock units aligns the director's interests with the long-term performance of the company.
• The Deferred Compensation Plan for Directors incentivizes continued service and commitment to Clearwater Paper.

Future Outlook

The phantom stock units will be converted to cash and paid upon the reporting person's termination from service with Clearwater Paper in accordance with the provisions of the Clearwater Paper Corporation Deferred Compensation Plan for Directors.

Industry Context

This filing is a routine disclosure of insider transactions, common in publicly traded companies to ensure transparency and compliance with SEC regulations. Phantom stock grants are a common form of executive compensation.

Comparison to Industry Standards

• Phantom stock grants are a fairly common compensation tool used by companies like Clearwater Paper to align the interests of directors and executives with those of shareholders.
• Companies such as International Paper (IP) and WestRock (WRK) also utilize various forms of equity-based compensation, including restricted stock units and performance-based awards, to incentivize their leadership teams.
• The specific terms and conditions of these grants, such as vesting schedules and conversion rates, can vary widely based on company-specific factors and industry norms.

Stakeholder Impact

• The acquisition of phantom stock units by a director can positively influence shareholder confidence by demonstrating a commitment to the company's future.

Key Dates