Form 4: Howmet Aerospace Executive Acquires Phantom Stock Units

Howmet Aerospace Vice President Michael Niem Chanatry acquired 138 phantom stock units under the company's deferred compensation plan.

Summary

• Michael Niem Chanatry, a Vice President at Howmet Aerospace, acquired 138 phantom stock units on November 30, 2024.
• These phantom stock units were acquired under the Howmet Aerospace Deferred Compensation Plan.
• Each phantom stock unit is equivalent to one share of Howmet Aerospace common stock.
• The units will be paid out in cash after Mr. Chanatry's termination of employment.
• Mr. Chanatry has the option to transfer the phantom stock units into an alternative investment account under the plan at permitted times.
• Following this transaction, Mr. Chanatry directly owns 462 phantom stock units.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to executive compensation, which is generally neutral to positive for investors as it aligns management interests with company performance. There is no indication of any negative or unexpected events.

Positives

• The acquisition of phantom stock units aligns executive compensation with company performance.
• The deferred compensation plan provides a long-term incentive for the executive.

Future Outlook

The phantom stock units will be paid out in cash after termination of employment.

Industry Context

This is a standard practice for executive compensation in publicly traded companies, aligning executive interests with shareholder value through equity-based incentives.

Comparison to Industry Standards

• Deferred compensation plans using phantom stock units are common among large public companies like Howmet Aerospace, similar to plans used by companies such as Boeing and General Electric.
• These plans are designed to retain key executives and align their interests with long-term shareholder value, a practice seen across the aerospace and manufacturing sectors.
• The use of phantom stock units is a common method of deferred compensation, comparable to restricted stock units or stock options, which are also frequently used by companies like Lockheed Martin and Raytheon.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders by aligning executive compensation with company performance.
• The transaction has no immediate impact on employees, customers, suppliers, or creditors.

Key Dates

Keywords

Howmet Aerospace, phantom stock units, deferred compensation, executive compensation, Form 4, insider trading