Form 4: Flowserve Director Acquires Phantom Stock as Compensation

Flowserve Director Cheryl H. Johnson acquired 435 shares of phantom stock as deferred compensation, increasing her beneficial ownership to 10,888 shares.

Summary

• Cheryl H. Johnson, a Director at Flowserve Corp (FLS), acquired 435 shares of phantom stock.
• The transaction occurred on November 13, 2025.
• Each share of phantom stock is the economic equivalent of one share of common stock.
• The phantom stock represents director compensation deferred under the issuer's deferred compensation plan.
• The shares of phantom stock become payable in the form of common stock upon Ms. Johnson's termination of service as a board member.
• The price of the phantom stock at the time of acquisition was $69.27 per share.
• Following this transaction, Ms. Johnson beneficially owns 10,888 shares of phantom stock.

Sentiment

Score: 6

Explanation: The filing reports a routine, pre-planned compensation event for a director, which is generally neutral but slightly positive as it aligns director interests with shareholders. It does not indicate any unexpected operational or financial performance.

Positives

• The acquisition of phantom stock aligns the director's interests with those of shareholders, as the value is tied to the company's common stock performance.
• This transaction is part of a structured deferred compensation plan, indicating a routine and planned compensation event for a director.

Future Outlook

The phantom stock will 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.

Management Comments

• The phantom stock represents director compensation deferred in the form of common stock pursuant to the issuer's deferred compensation plan.

Industry Context

Form 4 filings are standard disclosures for insider transactions, providing transparency into changes in beneficial ownership by company directors, officers, and significant shareholders. This specific filing details a routine compensation event for a director.

Corporate Governance

Related Party Transactions

• The acquisition of phantom stock by Director Cheryl H. Johnson is a related party transaction, representing compensation provided by Flowserve Corp to a member of its board of directors.

Stakeholder Impact

• Shareholders: The transaction is a routine compensation event, aligning director interests with shareholder value through equity-based compensation. It has minimal direct impact on current share price.
• Employees: No direct impact mentioned.

Next Steps

• The phantom stock will convert to common stock and become payable upon the reporting person's termination of service as a board member.

Key Dates

Keywords

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