Form 4: Paramount Global Executive Julia Phelps Reports Changes in Beneficial Ownership

Julia Phelps, EVP, Chief Comms & Corp Mktg at Paramount Global, reports transactions involving Class B common stock and Restricted Share Units (RSUs) related to vesting and tax obligations.

Summary

• Julia Phelps, an executive at Paramount Global, filed a Form 4 detailing changes in her beneficial ownership of the company's Class B common stock and Restricted Share Units (RSUs).
• On March 1, 2024, shares were issued upon the vesting of RSUs granted in previous years (March 1, 2023 and March 1, 2022).
• A total of 7,517 shares were issued from RSUs granted on March 1, 2023, and 4,030 shares were issued from RSUs granted on March 1, 2022.
• 4,714 shares were withheld by Paramount Global to cover tax liabilities associated with the vesting of the RSUs at a price of $10.95.
• Phelps also acquired 42,037 RSUs that will vest in three equal annual installments beginning March 1, 2025.
• Following these transactions, Phelps directly owns 38,762 shares of Class B common stock and indirectly owns 170 shares through a 401(k).
• She also holds 8,059 and 15,033 RSUs from previous grants, and 42,037 RSUs from the latest grant.

Sentiment

Score: 6

Explanation: The sentiment is neutral as the document primarily reports routine transactions related to executive compensation. There are no explicit positive or negative implications for the company's performance.

Positives

• The granting of RSUs aligns executive compensation with the company's long-term performance.

Negatives

• The withholding of shares to cover tax liabilities reduces the number of shares the executive ultimately receives.

Risks

• Fluctuations in the stock price could impact the value of the RSUs upon vesting.
• Changes in tax laws could affect the tax liability associated with the vesting of RSUs.

Future Outlook

The executive will receive shares of Class B common stock in three equal annual installments beginning on March 1, 2025, contingent on the vesting of the newly granted RSUs.

Industry Context

Executive compensation through stock and RSU grants is a common practice in the media and entertainment industry to align management interests with shareholder value.

Comparison to Industry Standards

• Companies like Disney, Netflix, and Warner Bros. Discovery also utilize stock options and RSUs as part of their executive compensation packages.
• The vesting schedules and grant sizes are typically benchmarked against peer companies to ensure competitive compensation.

Stakeholder Impact

• Shareholders may view the RSU grants as a positive incentive for management to drive long-term value.
• Employees may see the executive's stock ownership as a sign of confidence in the company's future.

Next Steps

• The executive will continue to receive shares upon the vesting of future RSU installments.
• The company will likely continue to grant RSUs as part of its long-term incentive plan.

Key Dates