Form 4: Clearwater Paper Corp Director Nelson Ann C Acquires Phantom Stock Units

Director Ann C Nelson acquired phantom stock units in Clearwater Paper Corp's Deferred Compensation Plan for Directors, convertible to cash upon termination of service.

Summary

• On May 10, 2024, Ann C Nelson, a director of Clearwater Paper Corp, acquired phantom stock units under the company's Deferred Compensation Plan for Directors.
• The transaction involved the acquisition of 2,787.456 phantom stock units at a price of $43.05 per unit.
• These units are credited to Nelson's account and will be converted to cash on a 1-for-1 basis with Clearwater Paper's common stock upon termination of service.
• 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, Nelson beneficially owns 17,458.922 phantom stock units.

Sentiment

Score: 6

Explanation: The document is a standard regulatory filing detailing an insider transaction. It doesn't contain overtly positive or negative information, but the granting of stock options is generally viewed as a positive sign for aligning management and shareholder interests.

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 designed to retain and reward key personnel.

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, which are common in publicly traded companies. These transactions are subject to regulatory scrutiny to prevent insider trading and ensure transparency.

Comparison to Industry Standards

• Deferred compensation plans are a common practice among publicly traded companies to attract and retain directors.
• The specifics of these plans, such as vesting schedules and payout terms, can vary widely based on company size, industry, and individual circumstances.
• Comparing Clearwater Paper's plan to those of similar-sized companies in the paper and forest products industry would provide a more detailed benchmark.

Stakeholder Impact

• Shareholders may view the transaction positively as it aligns the director's interests with the company's performance.
• Employees are not directly impacted by this transaction.

Key Dates