Form 4: Packaging Corp of America Executive VP Donald R. Shirley Reports Stock Transactions

Executive VP Donald R. Shirley of Packaging Corp of America reports acquisition and disposal of common stock related to performance units and tax obligations.

Summary

• On April 4, 2025, Donald R. Shirley, Executive VP of Packaging Corp of America, reported transactions involving the company's common stock.
• Shirley acquired 5,417 shares of common stock at $0 due to the attainment of performance measures under TSR performance units awarded on February 23, 2022, with performance achieved at 187.4%.
• An additional 472 shares were acquired at $0 as a payout of accumulated dividends on vesting performance units.
• 2,318 shares were disposed of at $183.42 to cover withholding tax obligations associated with equity awards vesting on the transaction date.
• Following these transactions, Shirley directly owns 23,383 shares and indirectly owns 6,289 shares through a 401(k) plan.

Sentiment

Score: 6

Explanation: Neutral sentiment as the document primarily reports routine stock transactions related to executive compensation and tax obligations. The attainment of performance measures is a positive sign, but the disposal of shares for tax purposes is a neutral event.

Positives

• The attainment of performance measures at 187.4% suggests strong performance relative to the targets set by the compensation committee.

Negatives

• The disposal of 2,318 shares to cover tax obligations, while standard, reduces the executive's direct holdings.

Industry Context

Executive stock transactions are a common occurrence in publicly traded companies and are closely monitored by investors for insights into management's perspective on the company's performance and future prospects.

Comparison to Industry Standards

• Executive compensation structures, including performance-based equity awards, are common across publicly traded companies.
• The specific performance metrics and payout percentages vary depending on the company and industry.
• Companies like International Paper (IP) and WestRock (WRK) also utilize equity-based compensation for their executives, but the details of their plans would need to be reviewed for a direct comparison.

Stakeholder Impact

• The attainment of performance measures benefits shareholders by aligning executive compensation with company performance.
• The stock transactions themselves have a minimal direct impact on other stakeholders.

Key Dates

Keywords

Packaging Corp of America, Executive VP, Donald R. Shirley, Stock Transactions, Form 4, Performance Units, Equity Awards, TSR, Dividends, Tax Withholding