Form 4: Packaging Corporation of America Executive Reports Stock Award Vesting and Tax Withholding

Kent A. Pflederer, SVP of Packaging Corporation of America, reports the vesting of restricted stock and performance units, along with shares withheld for tax obligations.

Summary

• On February 28, 2024, Kent A. Pflederer, a Senior Vice President at Packaging Corporation of America (PKG), reported changes in beneficial ownership of company stock.
• These changes include the award of 2,598 restricted stock units, the vesting of 2,956 performance units (achieved at 100% level based on performance measure certified by the Non-Employee Director subcommittee on February 28, 2024), and a payout of 286 shares of accumulated dividends on vesting performance units.
• The company withheld 1,437 shares at a price of $176.36 to cover tax obligations related to the vesting of these equity awards.
• Following these transactions, Pflederer directly owns 57,540 shares of common stock and indirectly owns 4,020 shares through a 401(k) plan.

Sentiment

Score: 7

Explanation: The document reflects standard executive compensation practices and achievement of performance goals, suggesting a neutral to slightly positive outlook.

Positives

• The vesting of performance units at 100% suggests the company achieved its performance goals.
• The executive's continued holding of a significant number of shares (57,540 directly and 4,020 indirectly) indicates confidence in the company's future.

Industry Context

Executive compensation and stock ownership are standard practices in publicly traded companies like Packaging Corporation of America. Form 4 filings are a routine part of regulatory compliance, providing transparency into insider transactions.

Stakeholder Impact

• The vesting of performance units reflects positively on the company's performance, potentially benefiting shareholders.
• Executive stock ownership aligns management's interests with those of shareholders.

Key Dates