Form 4: Kontoor Brands Director Robert Lynch Acquires Phantom Stock Units Through Deferred Savings Plan

Director Robert Lynch of Kontoor Brands acquired 248.8582 phantom stock units through the company's Deferred Savings Plan for Non-Employee Directors.

Summary

• Robert Lynch, a director at Kontoor Brands, acquired 248.8582 phantom stock units on December 27, 2024.
• These units were acquired through the Kontoor Brands Deferred Savings Plan for Non-Employee Directors.
• The phantom stock units will be settled in cash upon Mr. Lynch's retirement.
• The acquisition price was $85.39 per unit, reflecting the deferred director's fees.
• The total number of phantom stock units beneficially owned by Mr. Lynch is now 6,909.9245.
• The number of PSUs beneficially owned may vary over time due to deemed reinvestment of dividends.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, which is generally neutral to positive. The use of phantom stock units is a common practice and aligns director interests with the company's performance.

Positives

• The acquisition of phantom stock units aligns director compensation with the long-term performance of the company.
• The deferred savings plan allows directors to accumulate wealth in a tax-efficient manner.

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 is common for publicly traded companies. It reflects a standard practice of using deferred compensation plans for non-employee directors.

Comparison to Industry Standards

• Deferred compensation plans, including phantom stock units, are a common practice for compensating non-employee directors in publicly traded companies.
• Many companies, such as VF Corporation (VFC) and Levi Strauss & Co. (LEVI), use similar methods to align director interests with shareholder value.
• The specific terms of the plan, such as the vesting schedule and settlement method, can vary across companies, but the general concept is widely adopted.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders by aligning director interests with the company's long-term performance.
• The transaction has no direct impact on employees, customers, suppliers, or creditors.

Key Dates

Keywords

phantom stock, director compensation, deferred savings plan, Kontoor Brands, insider trading, Form 4, KTB