Form 4: Flowserve Director Acquires Phantom Stock

Director John L. Garrison Jr. acquired 830 shares of phantom stock in Flowserve Corp. through deferred compensation.

Summary

• On July 30, 2025, John L. Garrison Jr., a director of Flowserve Corp, acquired 830 shares of phantom stock.
• The phantom stock was acquired as part of director compensation deferred in the form of common stock.
• The price of the phantom stock is $55.95 per share.
• Following the transaction, Garrison directly owns 35,672 derivative securities.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The acquisition of phantom stock by a director is generally a positive sign, indicating alignment with the company's future performance. However, it is a routine transaction and not a major event.

Positives

• Director John L. Garrison Jr.'s acquisition of 830 shares of phantom stock indicates continued alignment with the company's long-term performance.
• The acquisition is part of a deferred compensation plan, suggesting a commitment to the company's future.

Future Outlook

The shares of phantom stock become payable in the form of common stock upon the reporting person's termination of service as a member of the issuer's board of directors.

Industry Context

This transaction is typical for director compensation packages in publicly traded companies, where deferred stock or phantom stock is used to align director interests with shareholder value.

Comparison to Industry Standards

• Many companies, such as General Electric and Siemens, offer deferred compensation plans to their directors, often including phantom stock or stock options.
• Director compensation packages typically aim to align the interests of directors with those of shareholders, encouraging long-term value creation.
• The specifics of deferred compensation plans can vary widely based on company size, industry, and governance practices.

Stakeholder Impact

• Shareholders: The transaction signals that the director's interests are aligned with theirs, as the value of the phantom stock is tied to the company's stock performance.
• Employees: The transaction has minimal direct impact on employees.
• Customers and Suppliers: The transaction has no direct impact on customers or suppliers.
• Creditors: The transaction has no direct impact on creditors.

Key Dates

Recommendation

The acquisition of phantom stock by a director is a routine transaction and does not warrant a change in investment recommendation. The stock should be held.

Keywords

Flowserve, Director, Phantom Stock, Deferred Compensation, Form 4, Insider Transaction