Form 4: ONEOK Director Gerald B. Smith Reports Acquisition of Phantom Stock

Director Gerald B. Smith reports acquiring phantom stock in ONEOK Inc. through a deferred compensation plan.

Summary

• On May 22, 2024, Gerald B. Smith, a director of ONEOK Inc., reported acquiring 2,082 shares of phantom stock.
• The acquisition was made under the Issuer's Deferred Compensation Plan for Non-Employee Directors.
• The phantom stock is convertible into ONEOK common stock on a 1-for-1 ratio.
• The price of the phantom stock is $81.66.
• Following the transaction, Smith beneficially owns 12,119 shares of phantom stock directly.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive as it reflects a director's continued investment in the company through a standard compensation plan.

Positives

• The acquisition of phantom stock demonstrates the director's continued investment in the company's future.
• The Deferred Compensation Plan allows directors to align their interests with those of the shareholders.

Future Outlook

The phantom stock is settled in shares of Issuer common stock at the determination date or a designated date upon the reporting person's retirement.

Industry Context

Reporting of stock transactions by company insiders is a standard practice and provides transparency to investors. Deferred compensation plans are common for non-employee directors.

Comparison to Industry Standards

• Director compensation packages often include deferred stock or phantom stock as a way to align director interests with long-term shareholder value, similar to practices at companies like Kinder Morgan (KMI) and Williams Companies (WMB).
• The use of phantom stock settled upon retirement is a common feature in director compensation plans, mirroring arrangements seen at comparable firms such as Enterprise Products Partners (EPD).

Stakeholder Impact

• The transaction has a minimal direct impact on stakeholders as it is part of a pre-existing compensation plan.
• It signals continued alignment of director interests with shareholder value.

Key Dates