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

Director Robert K. Shearer reports acquisition of phantom stock units in Kontoor Brands Deferred Savings Plan.

Summary

• Robert K. Shearer, a director of Kontoor Brands, Inc., reported the acquisition of 792.9883 phantom stock units (PSUs) on March 29, 2024.
• These PSUs were accrued under the Kontoor Brands Deferred Savings Plan For Non-Employee Directors Plan and will be settled in cash upon retirement.
• The PSUs were acquired by deferring $59.90 of fees per PSU.
• Following the transaction, Shearer beneficially owns 32,970.157 PSUs.
• The reporting person has direct ownership of the phantom stock.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, indicating a stable and ongoing relationship between the director and the company. The sentiment is neutral to slightly positive as it shows continued investment by a director.

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 shareholders.

Future Outlook

The phantom stock units will be settled in cash upon the reporting person's retirement.

Industry Context

This filing is a routine disclosure of insider transactions, which are common for directors of publicly traded companies. It reflects participation in a deferred savings plan, a typical component of director compensation.

Comparison to Industry Standards

• Deferred compensation plans, including phantom stock units, are a common practice for compensating non-employee directors in publicly traded companies.
• Companies like Levi Strauss & Co. and VF Corporation (prior to the spin-off of Kontoor Brands) also utilize similar deferred compensation mechanisms for their board members.
• The specific terms and conditions of these plans vary, but the underlying principle of aligning director interests with shareholder value remains consistent.

Stakeholder Impact

• The transaction has a minimal direct impact on stakeholders.
• It provides transparency regarding director compensation and alignment with shareholder interests.

Key Dates