Form 4: Pfizer Director James C. Smith Acquires Phantom Stock Units as Deferred Compensation

Pfizer director James C. Smith acquired 1,696.193 phantom stock units as part of deferred compensation.

Summary

• James C. Smith, a director at Pfizer Inc., acquired 1,696.193 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 Mr. Smith's election following his retirement from the Board of Directors.
• The price of the underlying common stock at the time of the transaction was $26.53 per share.
• Following this transaction, Mr. Smith directly owns 139,543.661 phantom stock units.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, which is neither positive nor negative for the company's performance. It is a standard practice and does not indicate any significant change in the company's outlook.

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

This is a standard practice for compensating board members, aligning their interests with the long-term performance of the company.

Comparison to Industry Standards

• Deferred compensation in the form of phantom stock units is a common practice among large publicly traded companies like Pfizer, including Johnson & Johnson (JNJ) and Merck (MRK).
• These companies often use similar methods to align director compensation with shareholder value.
• The specific terms of the deferred compensation, such as the vesting schedule and settlement options, can vary between companies, but the general concept is widely adopted.

Stakeholder Impact

• The transaction has a minor impact on shareholders as it is part of the standard compensation package for directors.
• The transaction does not directly impact employees, customers, suppliers, or creditors.

Key Dates

Keywords

phantom stock units, deferred compensation, director compensation, insider trading, Pfizer, PFE, James C. Smith