Form 4: International Paper Executive Reports Stock Award and Tax Withholding

Clayton R. Ellis, a Senior Vice President at International Paper, reports the acquisition of performance share units and shares withheld for tax obligations.

Summary

• On February 10, 2025, Clayton R. Ellis, a Senior Vice President of International Paper, reported transactions involving International Paper common stock.
• Ellis acquired 27,651 shares of common stock related to performance share units (PSUs) earned under the 2022-2024 Performance Share Plan.
• These PSUs were granted on January 1, 2022, and vested based on pre-established performance goals.
• Additionally, 8,888 shares were withheld to cover tax obligations at a price of $56.07 per share.
• Ellis also indirectly owns 18,005 shares through the International Paper Company Salaried Savings Plan as of January 31, 2025.
• Following these transactions, Ellis directly owns 68,632 shares and indirectly owns 18,005 shares.

Sentiment

Score: 6

Explanation: The document reflects standard executive compensation practices and tax management, indicating a neutral sentiment. The vesting of performance share units suggests positive performance, but the tax withholding is a routine event.

Positives

• The acquisition of 27,651 shares indicates that performance goals were met under the 2022-2024 Performance Share Plan, suggesting positive performance by the company.

Industry Context

Form 4 filings are routine disclosures for company insiders and provide transparency into their transactions in the company's stock. This filing indicates standard compensation practices and tax management by a senior executive at International Paper.

Comparison to Industry Standards

• Performance-based equity compensation is a common practice among publicly traded companies, including International Paper's peers in the paper and packaging industry, such as WestRock and Smurfit Kappa.
• The vesting of performance share units based on pre-established goals aligns with industry standards for incentivizing executive performance and aligning their interests with those of shareholders.
• Tax withholding on equity awards is a standard procedure across the industry.

Stakeholder Impact

• The vesting of performance share units suggests that the company has met certain performance goals, which could positively impact shareholder value.

Key Dates

Keywords

International Paper, Clayton R. Ellis, Form 4, Performance Share Units, Stock, Tax Withholding, Beneficial Ownership, Salaried Savings Plan