Form 4: Honeywell Director Acquires Phantom Shares Through Deferred Compensation Plan

Honeywell International Inc. director D. Scott Davis acquired 266.0503 phantom shares through the company's deferred compensation plan on January 2, 2025.

Summary

• D. Scott Davis, a director at Honeywell International Inc., acquired 266.0503 phantom shares on January 2, 2025.
• These phantom shares were acquired through the company's Deferred Compensation Plan for Non-Employee Directors.
• The phantom shares are based on the price of Honeywell's common stock on the contribution date.
• The price per share used for the allocation was $225.52.
• The phantom shares will be settled in cash based on the price of Honeywell's common stock at the time of settlement, as elected by Mr. Davis.
• Following this transaction, Mr. Davis beneficially owns 22,385.7773 direct phantom shares.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction within a standard compensation plan, indicating a neutral to slightly positive sentiment as it shows continued director engagement.

Positives

• The acquisition of phantom shares indicates continued participation by the director in the company's compensation plan.
• The deferred compensation plan allows for tax-advantaged savings for non-employee directors.

Future Outlook

The phantom shares will be settled in cash at a future date based on the common stock price at settlement, as elected by Mr. Davis.

Industry Context

This is a standard practice for compensating non-employee directors at publicly traded companies, aligning their interests with those of shareholders through equity-based compensation.

Comparison to Industry Standards

• Deferred compensation plans are a common method for compensating non-employee directors across various industries.
• Many companies, such as General Electric and 3M, use similar plans to attract and retain qualified board members.
• The use of phantom shares is a typical approach to provide equity-based compensation without issuing actual shares, which can be more tax-efficient for the recipient.

Stakeholder Impact

• The transaction has a minimal impact on shareholders as it is part of a pre-existing compensation plan.
• The transaction does not directly impact employees, customers, suppliers, or creditors.

Key Dates

Keywords

phantom shares, deferred compensation, director, Honeywell, insider trading, Form 4, equity compensation