Form 4: Pfizer Director Cyrus Taraporevala Acquires Phantom Stock Units as Deferred Compensation

Pfizer director Cyrus Taraporevala acquired 1,413.494 phantom stock units as part of deferred compensation.

Summary

• Cyrus Taraporevala, a director at Pfizer Inc., acquired 1,413.494 phantom stock units on December 31, 2024.
• These units represent deferred director's compensation, including dividend equivalents.
• The units will be settled in cash or common stock at the director's election following retirement from the Board of Directors.
• The price of the underlying common stock at the time of the transaction was $26.53.
• Following the transaction, Mr. Taraporevala beneficially owns 9,083.695 phantom stock units.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, which is generally viewed neutrally to slightly positive as it aligns interests. There are no negative implications.

Positives

• The acquisition of phantom stock units aligns the director's interests with the long-term performance of the company.
• The deferred compensation plan provides a mechanism for retaining board members.

Future Outlook

The phantom stock units will be settled in cash or common stock upon the director's retirement from the Board of Directors.

Industry Context

This type of deferred compensation is common for board members of publicly traded companies, aligning their interests with long-term shareholder value.

Comparison to Industry Standards

• Deferred compensation plans using phantom stock units are a common practice among large publicly traded companies like Pfizer.
• Many companies in the pharmaceutical sector, such as Johnson & Johnson and Merck, use similar compensation structures for their board members.
• These plans are designed to incentivize long-term performance and retention of key personnel.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders by aligning director interests with long-term company performance.

Key Dates

Keywords

Pfizer, Director, Phantom Stock Units, Deferred Compensation, SEC Form 4, Cyrus Taraporevala, Stock Options, Executive Compensation