Form 4: Clearwater Paper Corp Director Laymon W. Joe Reports Acquisition of Phantom Stock Units

Director Joe W. Laymon reports acquiring phantom stock units in Clearwater Paper Corp through a deferred compensation plan.

Summary

• On April 1, 2024, Joe W. Laymon, a director of Clearwater Paper Corp, acquired 601.926 phantom stock units at a price of $43.61 per unit.
• These units were credited to Laymon's account under the Clearwater Paper Corporation Deferred Compensation Plan for Directors.
• The phantom stock units will be converted to cash on a 1-for-1 basis with the issuer's common stock, according to the plan's provisions.
• Following the transaction, Laymon directly owns 2,847.984 phantom stock units.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive as it reflects standard executive compensation practices and alignment of director interests with the company's performance.

Positives

• The acquisition of phantom stock units aligns the director's interests with the company's performance.
• The deferred compensation plan provides a mechanism for long-term value creation for directors.

Future Outlook

The phantom stock units will be converted to cash on a future date elected by the reporting person, according to the Clearwater Paper Corporation Deferred Compensation Plan for Directors.

Industry Context

This filing is a routine disclosure of a director's compensation and holdings, common in publicly traded companies. It reflects standard practices for aligning director incentives with shareholder value.

Comparison to Industry Standards

• Deferred compensation plans are a common practice among publicly traded companies to attract and retain qualified directors.
• The use of phantom stock units is a typical method to provide directors with equity-based compensation without diluting existing shareholders' ownership.
• Companies like International Paper and WestRock also utilize similar compensation strategies for their board members.

Stakeholder Impact

• The acquisition of phantom stock units by a director can positively influence shareholder confidence by aligning management's interests with those of the shareholders.

Key Dates