Form 4: Director Theresa J. Drew Reports Acquisition of Phantom Stock Units in Sonoco Products Co

Theresa J. Drew, a director of Sonoco Products Co, reported the acquisition of phantom stock units under the company's deferred compensation plan.

Summary

• On July 1, 2024, Theresa J. Drew, a director of Sonoco Products Co, acquired 720.5 phantom stock units.
• These units were accrued under the Sonoco Products Company directors deferred compensation plan.
• The phantom stock units are to be settled in Sonoco Products Company common stock 6 months after Drew's retirement.
• The price of the underlying common stock at the time of acquisition was $50.31.
• Following the transaction, Drew beneficially owns 14,754.3 phantom stock units.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, which is generally viewed neutrally. The use of phantom stock units is a common practice, suggesting a stable and well-structured compensation approach.

Positives

• The acquisition of phantom stock units aligns the director's interests with the long-term performance of the company.
• The deferred compensation plan is a common practice to retain and incentivize 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

Deferred compensation plans, including phantom stock units, are a common method used by companies to compensate and retain directors, aligning their interests with those of shareholders.

Comparison to Industry Standards

• Many publicly traded companies, such as International Paper and WestRock, utilize deferred compensation plans for their directors.
• These plans often include phantom stock units or similar instruments that vest over time and are settled in company stock upon retirement or separation from service.
• The specific terms of these plans, such as the vesting schedule and settlement date, can vary depending on the company's compensation policies and objectives.

Stakeholder Impact

• The transaction has a minimal direct impact on stakeholders.
• It reinforces the company's commitment to aligning director interests with shareholder value through deferred compensation.

Key Dates