Form 4: Ferrellgas Director Pamela Breuckmann Granted 12,729 Phantom Units

Ferrellgas Partners L P Director Pamela A. Breuckmann was granted 12,729 phantom units, aligning her interests with Class A Unit holders.

Summary

• Pamela A. Breuckmann, a Director of Ferrellgas Partners L P, was granted 12,729 phantom units on July 1, 2025.
• Each phantom unit represents the economic equivalent of one Class A Unit and accrues dividend equivalent rights.
• The phantom units are scheduled to vest on September 25, 2025.
• Upon vesting, each unit grants the right to a cash payment.
• The cash payment amount will be equal to the average closing price of a Class A Unit for the 10 trading days immediately preceding the payment trigger.
• Payment triggers include termination of service from the Board of Directors, a change of control, or the third anniversary of the July 1, 2025 grant date.

Sentiment

Score: 6

Explanation: Slightly positive as it aligns director interests with unit holders, indicating good corporate governance practices regarding compensation.

Positives

• The grant of phantom units to a director aligns management's financial interests with those of Class A Unit holders, promoting long-term value creation.
• The compensation structure, tied to the performance of Class A Units, incentivizes the director to contribute to the company's success.

Risks

• The value of the phantom units is subject to the market price fluctuations of Ferrellgas Class A Units, meaning the ultimate cash payment amount is not fixed.

Future Outlook

The phantom units are designed to vest on September 25, 2025, with a cash payment triggered by termination of service, a change of control, or the third anniversary of the July 1, 2025 grant date. The payment amount will be based on the average closing price of Class A Units over the 10 trading days preceding the trigger event.

Industry Context

This Form 4 filing details a routine equity compensation grant to a director, a common practice across industries to align the interests of board members with shareholders. It does not provide broader industry trends or competitive analysis.

Comparison to Industry Standards

• The grant of phantom units as a form of equity-linked compensation to directors is a standard practice in corporate governance across various industries.
• This type of award incentivizes long-term performance and aligns the director's financial interests with those of the company's unit holders.

Corporate Governance

Related Party Transactions

• The grant of 12,729 phantom units to Pamela A. Breuckmann, a Director of Ferrellgas Partners L P, constitutes a related party transaction as it involves compensation from the company to a member of its board.

Stakeholder Impact

• Shareholders/Unit Holders: The grant of phantom units to a director aligns their interests with those of the Class A Unit holders, potentially leading to better long-term decision-making focused on unit value.

Next Steps

• The phantom units are scheduled to vest on September 25, 2025.
• A cash payment will be made following the first to occur of termination of service from the Board, a change of control, or the third anniversary of the July 1, 2025 grant date.

Key Dates

Recommendation

Keywords

Ferrellgas, Pamela Breuckmann, Director, Phantom Units, Class A Units, SEC Form 4, Insider Transaction, Equity Compensation, Corporate Governance