Form 4: IBM Executive Thomas Robert David Reports Acquisition of Phantom Stock Units

Senior Vice President of IBM, Thomas Robert David, reports the acquisition of phantom stock units under the IBM Excess Savings Plan.

Summary

• On February 10, 2025, Thomas Robert David, a Senior Vice President at IBM, acquired phantom stock units under the IBM Excess Savings Plan.
• These phantom stock units convert to the cash value of IBM's common stock on a one-for-one basis.
• The distribution of these units is deferred until separation from the company, but the reporting person may transfer them into an alternative investment account under the plan.
• Following the transaction, Thomas beneficially owns 5 phantom stock units.

Sentiment

Score: 7

Explanation: The document reflects a routine executive compensation transaction, which is generally viewed neutrally. The alignment of executive interests with company performance is a positive factor.

Positives

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

Future Outlook

The distribution of phantom stock units is deferred until separation from the company.

Industry Context

This filing is a routine disclosure related to executive compensation and is common among publicly traded companies.

Comparison to Industry Standards

• Phantom stock plans are a common form of executive compensation used by companies like IBM to align executive incentives with shareholder value.
• Companies such as Microsoft, Apple, and Google also utilize similar equity-based compensation plans for their executives.
• The specifics of these plans, such as vesting schedules and conversion ratios, can vary widely across companies.

Stakeholder Impact

• Shareholders may view the acquisition of phantom stock units positively as it aligns executive interests with company performance.

Key Dates