Form 4: PPG Industries Executive Acquires Phantom Stock Units in Deferred Compensation Plan

Amy R. Ericson, Senior Vice President of P&M Coatings at PPG Industries Inc., acquired 14.7665 phantom stock units as part of a deferred compensation plan.

Summary

• The reporting person is Amy R. Ericson, who holds the position of Sr. VP, P&M Coatings at PPG Industries Inc. (PPG).
• On June 13, 2025, Ms. Ericson acquired 14.7665 phantom stock units.
• These phantom stock units are convertible to PPG common stock on a one-for-one basis.
• The derivative security (phantom stock unit) was valued at $106.3 per unit at the time of acquisition.
• Following this transaction, Ms. Ericson beneficially owns a total of 32.4493 phantom stock units in the PPG Industries, Inc. Deferred Compensation Plan.
• Phantom stock units represent interests in an unfunded unitized company stock fund, comprising both stock and cash, and their attributed number of shares can change based on the fair market value of PPG's common stock and the fund's cash amount.
• The units become exercisable and convertible into common stock after the termination of employment with PPG.

Sentiment

Score: 6

Explanation: 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 is a neutral to slightly positive signal. It is a routine filing with no unexpected negative information.

Positives

• The acquisition of phantom stock units by a senior executive indicates continued participation in the company's long-term incentive plans.
• The nature of phantom stock units aligns the executive's financial interests with shareholder value, as their value is directly tied to the company's common stock performance.

Negatives

• No direct negatives are identified in this routine executive compensation filing.

Risks

• The value of the phantom stock units can fluctuate based on the fair market value of PPG's common stock and the amount of cash in the underlying fund, meaning the ultimate value received by the executive is not fixed and is subject to market risk.

Future Outlook

The phantom stock units held by Amy R. Ericson are structured to convert into PPG common stock on a one-for-one basis after her termination of employment with the company.

Management Comments

• The document clarifies that "Phantom stock units represent interests in an unfunded unitized company stock fund comprised of stock and cash. 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

This transaction represents a standard executive compensation mechanism, commonly employed across various industries, including the materials and coatings sector, to align the long-term incentives of senior management with the company's performance and shareholder value creation.

Comparison to Industry Standards

• The use of phantom stock units as a component of executive deferred compensation is a widely accepted practice among large publicly traded companies, consistent with industry standards for executive remuneration.
• While specific comparable companies or projects are not detailed in this individual filing, such plans are common in companies similar to PPG Industries, which operate in the global industrial and specialty chemicals sectors.

Stakeholder Impact

• Shareholders: The acquisition of phantom stock units by an executive aligns their interests with shareholder value, as the units' value is tied to the company's stock performance. Upon conversion, there will be a minor dilutive effect, which is a standard component of executive compensation plans.

Next Steps

• The phantom stock units will convert to common stock upon the reporting person's termination of employment with PPG.

Key Dates

Keywords

PPG Industries, PPG, SEC filing, Form 4, insider transaction, executive compensation, phantom stock units, deferred compensation, Amy R. Ericson