Form 4: International Paper Director Clinton A. Lewis Jr. Reports Acquisition of Restricted Stock Units

Director Clinton A. Lewis Jr. reports acquisition of 8,476 restricted stock units of International Paper for director service.

Summary

• On May 13, 2024, Clinton A. Lewis Jr., a director of International Paper, acquired 8,476 restricted stock units (RSUs) as compensation for his service as a director for the 2024-2025 performance year.
• These RSUs represent the right to receive one share of International Paper common stock per unit, settled in cash on January 1 following termination of service as a director.
• Following this transaction, Mr. Lewis directly owns 63,125 derivative securities, which includes previously credited dividend equivalents acquired through a dividend reinvestment feature of the company's Long-Term Incentive Plan.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. It reflects a standard director compensation practice, indicating confidence in the company's future performance. The acquisition of RSUs aligns the director's interests with those of the shareholders.

Positives

• The acquisition of restricted stock units aligns the director's interests with the long-term performance of the company.
• Dividend equivalents are reinvested, potentially increasing the value of the holdings over time.

Future Outlook

The restricted stock units will be settled in cash on January 1 following the year in which the reporting person terminates service as a director.

Industry Context

This filing is a routine disclosure of a director's compensation in the form of restricted stock units, which is a common practice among publicly traded companies to align management's interests with shareholders'.

Comparison to Industry Standards

• Director compensation packages often include a mix of cash, stock options, and restricted stock units.
• Companies like WestRock and Smurfit Kappa also utilize equity-based compensation for their directors.
• The specific amount and terms of the RSUs are typical for director compensation at companies of similar size and industry to International Paper.

Stakeholder Impact

• The acquisition of restricted stock units by a director can positively influence shareholder sentiment, as it aligns the director's interests with the company's long-term success.
• Employees may view this as a positive sign of management's commitment to the company.

Key Dates