Form 4: IBM Director David N. Farr Acquires 319 Shares Through Deferred Compensation Plan

IBM director David N. Farr acquired 319 shares of common stock through a deferred compensation plan on June 28, 2024.

Summary

• David N. Farr, a director at IBM, acquired 319 shares of IBM common stock on June 28, 2024.
• The shares were acquired through the IBM Board of Directors Deferred Compensation and Equity Award Plan.
• These shares are considered 'Promised Fee Shares' and will be distributed after retirement, either in common stock or cash.
• The price of the shares at the time of acquisition was $172.95 per share.
• Following this transaction, Mr. Farr directly owns 20,409 shares of IBM common stock.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, which is generally viewed neutrally to slightly positive as it aligns director interests with the company's performance.

Positives

• The acquisition of shares by a director can be seen as a positive sign of confidence in the company's future.
• The deferred compensation plan aligns the director's interests with the long-term performance of the company.

Future Outlook

The 'Promised Fee Shares' will be distributed to Mr. Farr after his retirement, either in common stock or cash.

Industry Context

This is a routine transaction related to director compensation and is common practice for publicly traded companies.

Comparison to Industry Standards

• Deferred compensation plans are a common practice for directors at large public companies like IBM.
• Many companies use similar plans to align director interests with long-term shareholder value.
• The number of shares acquired is relatively small compared to the overall outstanding shares of IBM, which is typical for director compensation.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders as it demonstrates director confidence in the company.
• The transaction has no direct impact on employees, customers, suppliers, or creditors.

Key Dates

Keywords

IBM, David N. Farr, Director, Share Acquisition, Deferred Compensation, Equity Award Plan, Insider Trading, Form 4