Form 4: Clearwater Paper Corp Director Vickers Reports Acquisition of Phantom Stock Units

Director Christine M. Vickers 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, Christine M. Vickers, a director of Clearwater Paper Corp, acquired 2,787.456 phantom stock units 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 Ms. Vickers' termination from 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 on May 1, 2025.
• Following the transaction, Ms. Vickers beneficially owns 13,405.416 phantom stock units.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. It reflects a standard compensation practice that aligns director interests with company performance. There are no indications of negative events or concerns.

Positives

• The acquisition of phantom stock units aligns the director's interests with the long-term performance of the company.
• The Deferred Compensation Plan provides a mechanism for directors to accumulate wealth tied to the company's stock performance.

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

This filing is a routine disclosure related to director compensation and is typical for publicly traded companies. It reflects a component of executive pay tied to company performance.

Comparison to Industry Standards

• Deferred compensation plans for directors are common across publicly traded companies.
• The structure of Clearwater Paper's plan, with phantom stock units converting to cash upon termination, is a standard approach.
• Companies like International Paper (IP) and Domtar (now part of Paper Excellence) also utilize similar compensation strategies for their board members.

Stakeholder Impact

• Shareholders may view this as a positive sign, as it aligns the director's interests with the company's long-term success.
• Employees are unlikely to be directly impacted by this transaction.

Key Dates