Form 4: Pfizer Director Cyrus Taraporevala Reports Acquisition of Phantom Stock Units

Director Cyrus Taraporevala reports acquisition of 8,999 phantom stock units of Pfizer Inc. on April 24, 2025, as part of deferred compensation.

Summary

• Cyrus Taraporevala, a director of Pfizer Inc., filed a Form 4 on April 28, 2025, reporting a transaction.
• On April 24, 2025, Mr. Taraporevala acquired 8,999 phantom stock units.
• These units were granted under the Pfizer Inc. Nonfunded Deferred Compensation and Unit Award Plan for Non-Employee Directors.
• Each unit represents one phantom share of common stock.
• The price of the phantom stock units is $22.78.
• These units represent deferred director's compensation that are settled in cash or common stock at the director's election following retirement from the Board of Directors.
• Following the transaction, Mr. Taraporevala beneficially owns 19,708.697 shares of common stock.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, indicating standard corporate governance practices. It's neutral to slightly positive as it aligns director interests with company performance.

Positives

• The acquisition of phantom stock units aligns the director's interests with the long-term performance of the company.
• The deferred compensation plan is a common practice for non-employee directors.

Future Outlook

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

Industry Context

Deferred compensation plans, including phantom stock units, are a common practice in corporate governance to align the interests of non-employee directors with the long-term success of the company. These plans are designed to incentivize directors to make decisions that benefit shareholders over the long term.

Comparison to Industry Standards

• Many large pharmaceutical companies, such as Johnson & Johnson and Merck, utilize deferred compensation plans for their non-employee directors.
• These plans often include stock options, restricted stock units, or phantom stock units.
• The specific terms of these plans, such as vesting schedules and settlement options, can vary widely.

Stakeholder Impact

• The acquisition of phantom stock units aligns the director's interests with those of the shareholders, potentially leading to better decision-making for the company's long-term success.

Key Dates

Keywords

Form 4, Pfizer, Director, Phantom Stock Units, Deferred Compensation, PFE, Cyrus Taraporevala