Form 4: Ingredion Inc. Executive Acquires Phantom Stock Units

Jinghuai Xu, SVP and Chief Innovation Officer at Ingredion Inc., acquired phantom stock units under the company's SERP plan.

Summary

• On February 29, 2024, Jinghuai Xu, SVP, Chief Innovation Officer of Ingredion Inc., acquired 22.716 units of phantom stock.
• The phantom stock was allocated under the company's Supplemental Executive Retirement Plan (SERP).
• Each phantom stock unit represents the right to receive one share of Ingredion's common stock.
• The price of the phantom stock is based on the closing price of Ingredion's common stock on February 29, 2024, which was $117.63.
• Following the transaction, Xu directly owns 11,445.7439 derivative securities.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation transaction, which is generally viewed neutrally. The acquisition of phantom stock is a positive sign of alignment between management and shareholders, but it's not a major event that would significantly impact the company's outlook.

Positives

• The acquisition of phantom stock aligns the executive's interests with those of the shareholders.
• The SERP is designed to attract and retain top talent.

Industry Context

Executive compensation through equity-based awards like phantom stock is a common practice in publicly traded companies to incentivize performance and align management's interests with shareholders.

Comparison to Industry Standards

• Many companies in the food and beverage industry, such as Archer Daniels Midland (ADM) and Bunge Limited (BG), utilize similar equity-based compensation plans for their executives.
• These plans often include stock options, restricted stock units (RSUs), and performance-based awards to incentivize long-term value creation.
• The specific terms and conditions of these plans can vary widely depending on the company's size, performance, and industry practices.

Stakeholder Impact

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

Key Dates