Form 4: Ingredion Inc. Executive Acquires Phantom Stock Units

David Eric Seip, SVP at Ingredion Inc., reports acquisition of phantom stock units under the company's SERP plan.

Summary

• On March 29, 2024, David Eric Seip, SVP, Global Ops and CSCO of Ingredion Inc., acquired 7.75 phantom stock units.
• These units were allocated under the company's Supplemental Executive Retirement Plan (SERP).
• Following the transaction, Seip beneficially owns 4,996.4561 phantom stock units.
• Each phantom stock unit represents the right to receive one share of Ingredion's common stock.
• The price of the phantom stock is $116.85, based on the closing price of Ingredion's common stock on March 28, 2024, as the NYSE was closed on March 29, 2024.

Sentiment

Score: 7

Explanation: The document reflects a routine executive compensation transaction, which is generally viewed neutrally. The acquisition of phantom stock units can be seen as a positive sign of alignment between management and shareholders.

Positives

• The acquisition of phantom stock units aligns the executive's interests with those of the shareholders.
• The SERP plan is designed to retain and incentivize key executives.

Industry Context

Phantom stock grants are a common form of executive compensation used by publicly traded companies to align executive interests with shareholder value. They provide executives with the benefits of stock ownership without actually issuing shares, which can dilute existing shareholders' equity.

Comparison to Industry Standards

• Executive compensation packages, including phantom stock, are common in publicly traded companies like Ingredion.
• Companies such as Archer Daniels Midland (ADM) and Tate & Lyle also utilize various forms of equity-based compensation for their executives.
• The specific details of these packages, including the vesting schedules and performance metrics, can vary significantly based on company size, industry, and individual executive performance.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders by aligning executive interests with company performance.

Key Dates