Form 4: Lowes Companies Inc. Director Batchelder Reports Phantom Stock Acquisition

Director David H. Batchelder reports acquisition of phantom stock in Lowes Companies Inc. through deferred compensation.

Summary

• David H. Batchelder, a director of Lowes Companies Inc., reported the acquisition of 113.399 shares of phantom stock on June 28, 2024.
• The phantom stock was acquired through a credit of deferred compensation under the Issuer's Directors' Deferred Compensation Plan.
• Each share of phantom stock is equivalent to one share of common stock, and Batchelder will receive the cash value upon ceasing to be a director.
• The price of the derivative security is $220.46.
• Following the transaction, Batchelder beneficially owns 4,378.343 derivative securities.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, which is generally viewed neutrally. The acquisition of phantom stock can be seen as a positive sign of alignment between the director and the company's performance.

Positives

• The acquisition of phantom stock aligns the director's interests with the long-term performance of the company.
• The Directors' Deferred Compensation Plan is a common practice to attract and retain qualified 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 are a common practice among publicly traded companies to incentivize and retain board members. The use of phantom stock allows directors to benefit from the company's stock performance without directly owning the shares until a later date.

Comparison to Industry Standards

• Many large corporations, such as Home Depot (HD) and Walmart (WMT), offer similar deferred compensation plans to their directors.
• These plans often involve the granting of stock options or phantom stock units that vest over time or upon retirement.
• The specific terms of these plans, such as the vesting schedule and payout terms, can vary depending on the company's compensation policies and the director's individual agreement.

Stakeholder Impact

• The transaction has a minimal direct impact on shareholders, employees, customers, suppliers, and creditors.
• It primarily affects the director's compensation and alignment with the company's long-term success.

Key Dates