Form 4: Clearwater Paper Corp Director Kevin J Hunt Acquires Phantom Stock Units

Director Kevin J Hunt acquired phantom stock units in Clearwater Paper Corp's Deferred Compensation Plan for Directors, which will convert to cash upon termination of service.

Summary

• On May 10, 2024, Kevin J Hunt, 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 are part of 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 Hunt's termination from service with Clearwater Paper.
• The phantom stock allocations represent an annual award grant for service from May 1, 2024, through April 30, 2025, and will vest on May 1, 2025.
• Following the transaction, Hunt beneficially owns 35,990.552 units of Phantom Common Stock.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. It reflects a routine transaction related to director compensation, indicating alignment of interests with the company's performance.

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 is a common practice to attract and retain qualified board members.

Future Outlook

The phantom stock units will be converted to cash 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

Deferred compensation plans are a common practice among publicly traded companies to incentivize and retain directors. The use of phantom stock allows directors to benefit from the company's stock performance without directly owning shares until a later date.

Comparison to Industry Standards

• Many companies in the paper and forest products industry, such as International Paper and WestRock, offer similar deferred compensation plans to their directors.
• These plans often include phantom stock or restricted stock units that vest over time and are paid out upon retirement or termination of service.
• The specific terms of these plans, such as the vesting schedule and payout terms, can vary depending on the company's compensation policies and practices.

Stakeholder Impact

• Shareholders may view the director's acquisition of phantom stock as a positive sign, indicating confidence in the company's future performance.
• The compensation plan helps to retain qualified directors, which benefits the company and its stakeholders.

Key Dates