Form 4: Newell Brands Director Patrick D. Campbell Acquires Restricted Stock Units and Phantom Stock Units

Director Patrick D. Campbell reports acquisition of restricted stock units and deferred phantom stock units in Newell Brands Inc.

Summary

• On May 9, 2024, Patrick D. Campbell, a director of Newell Brands Inc., acquired 19,441 restricted stock units (RSUs).
• These RSUs will vest on the earlier of the first anniversary of the grant date or the company's next annual meeting, provided Campbell remains on the Board of Directors.
• Campbell elected to defer settlement of these RSUs, converting them into an equal number of phantom stock units under the 2008 Deferred Compensation Plan (DCP).
• Campbell also holds 64,050.51 deferred RSU phantom stock units, including 58,094 units from vested awards granted between 2018 and 2023 that were also converted to phantom stock units under the DCP.
• An additional 5,956.51 phantom stock units were acquired through a dividend reinvestment feature of the DCP, with 1,441.39 units acquired since the last report.
• The phantom stock units will be settled on a one-for-one basis for shares of Newell Brands Inc.'s common stock after Campbell's service on the Board ends, except for the dividend reinvestment units, which will be settled for cash.

Sentiment

Score: 7

Explanation: The document reflects standard executive compensation practices and insider transactions, suggesting a neutral to slightly positive sentiment due to the alignment of director interests with shareholders.

Positives

• The acquisition of restricted stock units and subsequent conversion to phantom stock units demonstrates Campbell's continued investment and alignment with the long-term success of Newell Brands.
• The dividend reinvestment feature of the DCP allows for the accumulation of additional phantom stock units, further aligning Campbell's interests with shareholders.

Future Outlook

The phantom stock units will be settled on a one-for-one basis for shares of Newell Brands Inc.'s common stock after Campbell's service on the Board ends, except for the dividend reinvestment units, which will be settled for cash.

Industry Context

This filing is a routine disclosure of a director's stock-based compensation and holdings, common in publicly traded companies. It provides transparency into the alignment of management's interests with those of shareholders.

Comparison to Industry Standards

• Stock-based compensation, including restricted stock units and phantom stock units, is a common practice among publicly traded companies to incentivize and retain key personnel, including directors.
• Deferred compensation plans, like the 2008 Deferred Compensation Plan (DCP) used by Newell Brands, are also common and allow executives to defer income and taxes until a later date, typically retirement or separation from the company.
• Dividend reinvestment programs are widely used to allow shareholders to automatically reinvest their dividends into additional shares of the company's stock.

Stakeholder Impact

• The acquisition of stock units by a director can be viewed positively by shareholders as it aligns the director's interests with the company's long-term performance.
• Employees may see this as a positive sign of management's commitment to the company.
• The impact on customers, suppliers, and creditors is likely minimal.

Key Dates