Form 4: Haverty Furniture Companies Director Trujillo Reports Acquisition of Phantom Stock

Director Alfredo Trujillo reports acquisition of phantom stock in Haverty Furniture Companies through a deferred compensation plan.

Summary

• On May 6, 2024, Alfredo Trujillo, a director of Haverty Furniture Companies Inc., acquired 7,113 shares of phantom stock.
• This acquisition was made under the Directors' Deferred Compensation Plan.
• The price of the derivative security (phantom stock) was $29.48.
• Following the transaction, Trujillo directly owns 58,054 derivative securities.
• Trujillo also directly owns 14,464 shares of common stock.

Sentiment

Score: 7

Explanation: The document reports a routine transaction related to director compensation, which is generally neutral to positive as it aligns director interests with the company's performance. The acquisition of phantom stock is a standard practice.

Future Outlook

Settlement of the phantom stock will occur as prescribed by the elections under the Directors' Deferred Compensation Plan.

Industry Context

This filing reflects routine transactions related to director compensation plans, which are common in publicly traded companies to align director interests with shareholder value.

Comparison to Industry Standards

• Director compensation plans involving phantom stock are a fairly standard practice among publicly listed companies, including furniture retailers and other consumer discretionary businesses.
• Companies like La-Z-Boy Incorporated and Ethan Allen Interiors Inc. also utilize various forms of equity-based compensation for their directors, such as stock options, restricted stock units, and deferred stock units, to incentivize performance and long-term value creation.
• The specific terms and conditions of these plans, including vesting schedules and settlement options, can vary significantly based on company size, industry practices, and individual director agreements.

Stakeholder Impact

• The transaction has a minimal direct impact on stakeholders.
• It reflects the company's ongoing commitment to compensating its directors, which indirectly supports corporate governance and long-term value creation.

Key Dates