Form 4: Director Steven L. Boyd Reports Acquisition of Phantom Stock Units in Sonoco Products Co

Steven L. Boyd, a director of Sonoco Products Co, reported the acquisition of phantom stock units under the company's directors deferred compensation plan.

Summary

• On April 1, 2024, Steven L. Boyd, a director of Sonoco Products Co, acquired 629.3 phantom stock units.
• These units were accrued under the Sonoco Products Company directors deferred compensation plan.
• Each phantom stock unit is equivalent to one share of Sonoco Products Company common stock.
• The units will be settled in Sonoco Products Company common stock 6 months after Boyd's retirement.
• Following the transaction, Boyd beneficially owns 3,783.8 phantom stock units.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive as it reflects standard director compensation practices and aligns director interests with shareholders.

Positives

• The acquisition of phantom stock units aligns the director's interests with the long-term performance of the company.
• The deferred compensation plan encourages long-term commitment from directors.

Future Outlook

The phantom stock units will be settled in Sonoco Products Company common stock 6 months after the reporting person's retirement.

Industry Context

Director compensation through stock and phantom stock units is a common practice in publicly traded companies to align the interests of directors with those of shareholders.

Comparison to Industry Standards

• Many companies, such as International Paper and WestRock, use similar deferred compensation plans for their directors, often involving stock options or restricted stock units.
• The specifics of these plans, such as vesting schedules and settlement terms, can vary widely based on company size, industry, and individual director agreements.

Stakeholder Impact

• The acquisition of phantom stock units by a director can positively influence shareholder confidence by aligning management's interests with the company's long-term success.

Key Dates