Form 4: PPG Executive Acquires Phantom Stock Units

Chancey E. Hagerty, PPG Industries' Sr. VP, Auto. Refinish Ctgs., acquired 16.5378 phantom stock units as part of a deferred compensation plan.

Summary

• Chancey E. Hagerty, Senior Vice President of Automotive Refinish Coatings at PPG Industries, Inc., acquired 16.5378 phantom stock units.
• The transaction occurred on September 30, 2025, with each unit valued at $105.11.
• These phantom stock units convert to common stock on a one-for-one basis.
• The units become exercisable after the termination of employment with PPG.
• Following this acquisition, Hagerty beneficially owns a total of 81.8167 phantom stock units.
• The phantom stock units are part of the PPG Industries, Inc. Deferred Compensation Plan and represent interests in an unfunded unitized company stock fund.

Sentiment

Score: 6

Explanation: Slightly positive. The acquisition of phantom stock units by a senior executive, even as part of a compensation plan, generally indicates continued alignment with company performance and can be seen as a minor positive signal of executive commitment.

Positives

• The acquisition of phantom stock units aligns the executive's interests with shareholder value, as the units convert to common stock.
• Increased beneficial ownership by a senior executive can signal confidence in the company's future performance.

Negatives

• No direct negatives are apparent from this routine compensation-related transaction.

Risks

• The value of the phantom stock units is subject to the fair market value of PPG's common stock and the amount of cash in the fund, introducing market risk.

Future Outlook

The phantom stock units become exercisable after the termination of employment, indicating a long-term incentive structure tied to future service.

Industry Context

This type of executive compensation, involving phantom stock units or similar equity-linked incentives, is a common practice across various industries to align management interests with long-term company performance and shareholder value.

Comparison to Industry Standards

• Deferred compensation plans utilizing phantom stock units are a standard component of executive compensation packages in large publicly traded companies, comparable to practices at peers like Sherwin-Williams (SHW) or AkzoNobel (AKZA.AS) in the coatings industry, which also use various forms of equity-based incentives to retain and motivate key personnel.
• The one-for-one conversion to common stock is a typical structure for such units, ensuring direct linkage to the company's share price performance.

Related Party Transactions

• The acquisition of phantom stock units by Chancey E. Hagerty, a Senior VP, from PPG Industries, Inc. is a transaction between a company and one of its officers, which is inherently a related party transaction as part of the executive compensation structure.

Stakeholder Impact

• Shareholders: The transaction aligns executive incentives with shareholder interests, as the value of the phantom units is tied to the common stock price.
• Employees: This transaction is part of a deferred compensation plan, which can be a component of broader employee retention and incentive strategies for key personnel.

Next Steps

• The phantom stock units will convert to common stock on a one-for-one basis after the reporting person's termination of employment with PPG.

Key Dates

Keywords

PPG Industries, PPG, Form 4, Insider Trading, Phantom Stock Units, Deferred Compensation, Executive Compensation, Chancey E. Hagerty, Stock Acquisition