Form 4: Kontoor Brands Director Acquires Phantom Stock Units

Robert K. Shearer, a Director at Kontoor Brands, Inc., has acquired phantom stock units under a deferred savings plan, with settlement in cash upon retirement.

Summary

• Robert K. Shearer, a Director of Kontoor Brands, Inc. (KTB), acquired 722.8045 phantom stock units (PSUs) on April 2, 2026.
• These PSUs were acquired through the deferral of director fees, with each PSU valued at $69.175 at the time of acquisition.
• The PSUs are settled 100% in cash upon the reporting person's retirement.
• Shearer's beneficial ownership following this transaction is 40,580.897 PSUs.
• This total includes 319.328 shares received as dividend equivalents on PSUs since the last statement.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral filing, as it primarily details routine compensation adjustments for a director rather than significant strategic or financial performance indicators.

Positives

• Director Shearer's continued participation in the deferred savings plan indicates confidence in the company's long-term prospects.
• The acquisition of PSUs through fee deferral demonstrates a commitment to aligning director compensation with shareholder value over time.
• Dividend reinvestment on PSUs suggests a growing value of the deferred compensation.

Negatives

• The transaction involves phantom stock units, which are cash-settled and do not represent direct equity ownership, potentially limiting direct alignment with common shareholders.
• The filing does not provide specific financial performance data for Kontoor Brands, Inc., making it difficult to assess the broader financial context of this transaction.

Risks

• The value of the phantom stock units is subject to fluctuations in Kontoor Brands' stock price, as they are settled in cash based on fair market value.
• The settlement of PSUs upon retirement means the reporting person will receive cash, not equity, which could have different implications for capital structure compared to stock-based awards.

Future Outlook

The phantom stock units are to be settled 100% in cash upon the reporting person's retirement. The number of PSUs beneficially owned may vary over time due to the deemed reinvestment of dividends.

Industry Context

StockSavvy.ai notes that the use of phantom stock units for director compensation is a common practice in the apparel and retail industry, allowing for performance-based incentives without immediate dilution of common stock.

Related Party Transactions

• The acquisition of phantom stock units by Director Robert K. Shearer under the Kontoor Brands Deferred Savings Plan For Non-Employee Directors Plan represents a transaction with a related party.

Stakeholder Impact

• Shareholders: The transaction does not directly impact share count but reflects a component of director compensation tied to company value.
• Employees: The deferred savings plan structure may be a model for other employee incentive programs.
• Management: Demonstrates adherence to corporate governance practices regarding director compensation.

Next Steps

• Settlement of phantom stock units in cash upon Robert K. Shearer's retirement.

Key Dates

Keywords

Kontoor Brands, KTB, Form 4, SEC Filing, Director Compensation, Phantom Stock Units, Deferred Savings Plan, Beneficial Ownership, Robert K. Shearer