Form 4: Pfizer Director Shantanu Narayen Acquires Phantom Stock Units as Deferred Compensation

Director Shantanu Narayen acquired 8,999 phantom stock units of Pfizer as part of a deferred compensation plan.

Summary

• On April 24, 2025, Shantanu Narayen, a director of Pfizer Inc., acquired 8,999 phantom stock units.
• These units were granted under Pfizer's Nonfunded Deferred Compensation and Unit Award Plan for Non-Employee Directors.
• Each unit represents one phantom share of Pfizer common stock.
• The price of the derivative security is $22.78.
• These units represent deferred director's compensation that are settled in cash or common stock at the director's election following the reporting person's retirement from the Board of Directors.
• Following the transaction, Narayen beneficially owns 168,172.257 derivative securities.

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 positive sign of aligning director interests with long-term shareholder value.

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 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 are a common practice for compensating non-employee directors in publicly traded companies, aligning their interests with shareholders.

Comparison to Industry Standards

• Pfizer's director compensation practices, including the use of phantom stock units, are generally in line with those of other large pharmaceutical companies such as Johnson & Johnson and Merck.
• These companies often use a mix of cash, stock options, and deferred compensation to attract and retain qualified board members.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders by aligning director compensation with company performance.

Key Dates

Keywords

Form 4, Pfizer, Director, Phantom Stock Units, Deferred Compensation, Narayen, Beneficial Ownership, Securities