Form 4: Ingredion Inc. Executive Reports Acquisition of Phantom Stock

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

Summary

• On June 14, 2024, David Eric Seip, SVP, Global Ops and CSCO of Ingredion Inc., acquired 9.443 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 June 14, 2024, which was $113.89.
• Following the transaction, Seip beneficially owns 5,078.6801 shares of phantom stock.

Sentiment

Score: 7

Explanation: The document reflects a routine executive compensation transaction, which is generally neutral to positive as it aligns executive interests with shareholder value. There are no indications of negative sentiment.

Positives

• The acquisition of phantom stock aligns the executive's interests with those of the shareholders.
• The SERP plan is a common executive compensation tool.

Industry Context

Phantom stock grants are a common component of executive compensation packages in publicly traded companies, designed to incentivize performance and align executive interests with shareholder value. This is a standard practice to attract and retain key personnel.

Comparison to Industry Standards

• Companies like Archer Daniels Midland (ADM) and Bunge Global SA (BG) also utilize similar executive compensation strategies, including stock options and restricted stock units, to align executive incentives with shareholder value.
• The prevalence of phantom stock and similar equity-based compensation plans is well-documented in the food processing industry, reflecting a broader trend in corporate governance to incentivize long-term performance.

Stakeholder Impact

• The acquisition of phantom stock by an executive can positively influence shareholder confidence by aligning management's interests with the company's long-term performance.

Key Dates