Form 4: PPG Industries CFO Vincent J. Morales Reports Acquisition of Phantom Stock Units

Vincent J. Morales, Senior VP & CFO of PPG Industries, reports acquiring phantom stock units following the settlement of a restricted stock unit performance award.

Summary

• On February 19, 2025, Vincent J. Morales, the Senior VP & CFO of PPG Industries, acquired 8,320 phantom stock units.
• This acquisition occurred after the settlement of a 2022 restricted stock unit performance award, where Morales deferred the receipt of 8,320 shares of common stock.
• These phantom stock units were received pursuant to the PPG Industries, Inc. Deferred Compensation Plan.
• Morales now holds a total of 26,448.8 phantom stock units in the PPG Industries, Inc. Deferred Compensation Plan.
• These units represent interests in an unfunded unitized company stock fund comprised of stock and cash, and the number of shares attributed to Morales may change based on the fair market value of PPG's common stock and the amount of cash in the fund.

Sentiment

Score: 7

Explanation: The document reflects a routine executive compensation transaction, which is generally neutral to positive as it aligns management interests with shareholders. There are no indications of negative sentiment.

Positives

• The acquisition of phantom stock units aligns Morales' interests with the long-term performance of PPG Industries.
• The Deferred Compensation Plan allows for tax-deferred growth of these units.

Risks

• The value of the phantom stock units is subject to the performance of PPG's common stock and the composition of the fund.
• The number of shares attributed to Morales may change depending on the fair market value of the issuer's common stock and the amount of cash in the fund.

Future Outlook

The number of shares attributed to the reporting person as a Plan participant may change from time to time without the volition of the reporting person depending on the fair market value of the issuer's common stock and the amount of cash in the fund.

Industry Context

Executive compensation packages often include stock-based awards to align management's interests with those of shareholders. Phantom stock units are a common tool for deferred compensation.

Comparison to Industry Standards

• PPG Industries' executive compensation practices, including the use of phantom stock units, are generally in line with those of other large, publicly traded companies in the chemicals and materials sector.
• Companies like Sherwin-Williams and Dow also utilize similar stock-based compensation plans for their executives.

Stakeholder Impact

• The acquisition of phantom stock units has a minor positive impact on shareholders as it aligns executive compensation with company performance.

Key Dates

Keywords

phantom stock units, PPG Industries, Vincent J. Morales, Deferred Compensation Plan, restricted stock unit, Form 4, CFO, securities