Form 4: Pfizer Director Hockfield Receives Phantom Stock Units as Deferred Compensation

Director Susan Hockfield acquired 8,115.598 phantom stock units of Pfizer Inc. as part of a deferred compensation plan.

Summary

• Susan Hockfield, a director of Pfizer Inc., received 8,115.598 phantom stock units on April 25, 2024, as part of the company's Nonfunded Deferred Compensation and Unit Award Plan for Non-Employee Directors.
• These units represent deferred director's compensation and will be settled in cash or common stock at Hockfield's election following her retirement from the Board of Directors.
• The price of the underlying common stock at the time of the transaction was $25.26.
• Following the transaction, Hockfield beneficially owns 31,187.802 phantom stock units.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, which is generally viewed neutrally. The use of deferred compensation is a common practice, suggesting stability and alignment of interests.

Positives

• The acquisition of phantom stock units aligns the director's interests with the long-term performance of the company.
• Deferred compensation plans can be tax-efficient for both the company and the director.

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 are a common practice for compensating non-employee directors, aligning their interests with the long-term success of the company. This is a standard method to attract and retain qualified board members.

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 involve granting stock options, restricted stock units, or phantom stock units that vest over time or upon retirement.
• The specific terms of these plans, such as the vesting schedule and settlement options, can vary depending on the company's compensation philosophy and tax considerations.

Stakeholder Impact

• The granting of phantom stock units to directors can positively impact shareholders by aligning director interests with long-term company performance.

Key Dates