Form 4: Quanex Building Products Director Lippert Acquires Phantom Stock Units

Director Jason Lippert acquired phantom stock units in Quanex Building Products through a deferred compensation plan.

Summary

• On May 22, 2024, Jason Lippert, a director of Quanex Building Products CORP, acquired 698.29 phantom stock units at a price of $32.52 per unit.
• These units were credited to Lippert's account under the Deferred Compensation Plan as a result of deferred director compensation.
• Each phantom stock unit is the economic equivalent of one share of common stock, and distributions are made in cash upon a specified date, death, disability, or termination of service.
• Following the transaction, Lippert beneficially owns 9,395.142 phantom stock units, which includes 18.067 units from automatic dividend reinvestment.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, indicating stable corporate governance practices. The sentiment is neutral to slightly positive as it shows alignment of director interests with the company's performance.

Future Outlook

Distributions under the Deferred Compensation Plan are made in cash beginning on a specified date selected by the participant or upon the participant's death, disability, or termination of service as a director.

Industry Context

This filing reflects routine compensation practices for directors, aligning with standard industry practices for incentivizing and retaining board members through equity-based compensation.

Comparison to Industry Standards

• Deferred compensation plans and phantom stock units are common tools used by publicly traded companies to compensate directors.
• Companies like Owens Corning and Masco Corporation also utilize similar equity-based compensation plans for their board members.
• The specific terms and amounts may vary, but the underlying principle of aligning director interests with shareholder value is consistent across the industry.

Stakeholder Impact

• The transaction has a minimal direct impact on shareholders, employees, customers, suppliers, and creditors.
• It primarily affects the director's holdings and compensation structure.

Key Dates