Form 4: Lowe's Director Lawrence Simkins Acquires Phantom Stock Through Deferred Compensation Plan

Director Lawrence Simkins of Lowe's Companies Inc. acquired phantom stock units through a deferred compensation plan, equivalent to 101.297 shares of common stock.

Summary

• Lawrence Simkins, a director at Lowe's Companies Inc., acquired 101.297 units of phantom stock on December 31, 2024.
• This acquisition was part of the company's Directors' Deferred Compensation Plan.
• Each phantom stock unit is economically equivalent to one share of Lowe's common stock.
• The phantom stock was credited to Simkins' deferred stock account.
• The value of the phantom stock is based on the price of Lowe's common stock, which was $246.8 per share at the time of the transaction.
• The total number of phantom stock units held by Simkins after the transaction is 308.418, including dividend credits.
• Simkins will receive the cash value of the phantom stock upon ceasing to be a director of Lowe's.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, which is generally viewed neutrally to slightly positive as it aligns director interests with company performance.

Positives

• The acquisition of phantom stock aligns the director's interests with the company's performance.
• The deferred compensation plan is a common practice for retaining and incentivizing board members.

Future Outlook

The reporting person will receive the cash value of the phantom stock upon ceasing to be a director of the Issuer.

Industry Context

Deferred compensation plans using phantom stock are a common practice for compensating directors in publicly traded companies, aligning their interests with shareholder value.

Comparison to Industry Standards

• Many large public companies, such as Home Depot, also use deferred compensation plans for their directors, often including phantom stock or similar equity-based awards.
• The use of phantom stock is a standard method to provide long-term incentives to board members, similar to stock options or restricted stock units.
• The value of the phantom stock is tied to the company's stock price, which is a common practice in director compensation plans.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders as it aligns director interests with the company's long-term performance.

Key Dates

Keywords

phantom stock, deferred compensation, director, Lowe's, insider transaction, equity compensation, Form 4