Form 4: IBM CFO Acquires Phantom Stock Units Through Savings Plan

IBM's Senior Vice President and CFO, James J. Kavanaugh, acquired 89 phantom stock units through the company's Excess Savings Plan.

Summary

• James J. Kavanaugh, Senior Vice President and CFO of IBM, acquired 89 phantom stock units on February 8, 2024.
• The acquisition was made through the IBM Excess Savings Plan, formerly known as the IBM Excess 401(k) Plus Plan.
• These phantom stock units represent the cash value of IBM's common stock on a one-for-one basis.
• The distribution of these units is deferred until Mr. Kavanaugh's separation from the company, but he may transfer them to an alternative investment account within the plan.
• Following this transaction, Mr. Kavanaugh directly owns 9,925 shares of IBM common stock.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to executive compensation, which is generally neutral to positive. It indicates alignment of interests between the executive and the company.

Positives

• The acquisition of phantom stock units aligns the CFO's interests with the company's performance.
• The IBM Excess Savings Plan provides a mechanism for executives to accumulate company stock.

Future Outlook

The distribution of the phantom stock units is deferred until Mr. Kavanaugh's separation from the company.

Industry Context

This is a routine filing related to executive compensation and is common practice for publicly traded companies.

Comparison to Industry Standards

• Many large public companies use phantom stock units as part of their executive compensation packages.
• The IBM Excess Savings Plan is similar to other deferred compensation plans offered by large corporations.
• The one-for-one conversion of phantom stock units to common stock value is a standard practice.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders as it aligns executive interests with company performance.

Key Dates

Keywords

IBM, phantom stock units, executive compensation, insider trading, savings plan, CFO, James J. Kavanaugh