Form 4: Kontoor Brands Director Robert K. Shearer Reports Acquisition of Phantom Stock Units

Director Robert K. Shearer reports acquiring phantom stock units in Kontoor Brands through a deferred savings plan.

Summary

• Robert K. Shearer, a director of Kontoor Brands, Inc., reported the acquisition of 556.2712 phantom stock units (PSUs) on December 27, 2024.
• These PSUs were accrued under the Kontoor Brands Deferred Savings Plan For Non-Employee Directors Plan and will be settled in cash upon the reporting person's retirement.
• The PSUs were acquired at a price of $85.39 each, reflecting the deferred director's fees.
• Following the transaction, Shearer beneficially owns 35,562.6291 PSUs.
• The reporting was filed on December 30, 2024.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, indicating stability and alignment of interests. It is neither overtly positive nor negative, hence a neutral to slightly positive sentiment.

Positives

• The acquisition of phantom stock units demonstrates the director's continued investment in the company's future.
• The deferred savings plan aligns the interests of non-employee directors with those of the shareholders.

Future Outlook

The number of PSUs beneficially owned may vary over time due to deemed reinvestment of dividends.

Industry Context

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

Comparison to Industry Standards

• Deferred compensation plans, including phantom stock units, are a common practice among publicly traded companies to align the interests of directors with shareholders.
• Companies like Levi Strauss & Co. (LEVI) and VF Corporation (VFC) also utilize similar compensation structures for their board members.
• The specific terms and amounts of deferred compensation vary based on company size, performance, and governance policies.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders by aligning director interests with company performance.

Key Dates