Form 4: Kontoor Brands Director Robert Lynch Reports Acquisition of Phantom Stock Units

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

Summary

• Robert Lynch, a director of Kontoor Brands, Inc., filed a Form 4 on September 30, 2024, reporting a transaction on September 27, 2024.
• The transaction involved the acquisition of phantom stock units (PSUs) under the Kontoor Brands Deferred Savings Plan For Non-Employee Directors Plan.
• Lynch acquired 257.7476 PSUs at a price of $82.445 per unit, deferring director's fees.
• Following the transaction, Lynch beneficially owns 6,575.9421 PSUs.
• These PSUs will be settled in cash upon Lynch's retirement.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. It reflects a standard transaction related to director compensation, indicating alignment with company performance.

Positives

• The acquisition of phantom stock units demonstrates the director's continued investment in the company's future.
• The deferred savings plan allows directors to align their interests with those of shareholders.

Future Outlook

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

Industry Context

Directors often use deferred compensation plans to align their interests with shareholders and manage their tax liabilities. This filing reflects a standard practice in corporate governance.

Comparison to Industry Standards

• Deferred compensation plans are a common practice among publicly traded companies to incentivize and retain directors.
• Companies like Levi Strauss & Co. and VF Corporation (previous parent company of Kontoor Brands) also utilize similar compensation strategies for their board members.
• The amount of deferred compensation and the terms of the plans can vary significantly based on company size, performance, and individual director agreements.

Stakeholder Impact

• The transaction has a minimal direct impact on stakeholders.
• It reinforces the alignment of director interests with shareholder value through deferred compensation.

Key Dates