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 directors deferred compensation plan.

Summary

• On April 1, 2025, Theresa J. Drew, a director of Sonoco Products Co, acquired 756.3 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 price of the underlying common stock was $47.96.
• Following the transaction, Drew beneficially owns 17,413.1 phantom stock units directly.
• The phantom stock units are to be settled in Sonoco Products Company common stock 6 months after Drew's retirement.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, indicating a stable and well-managed company. The use of phantom stock units suggests a focus on long-term alignment with shareholder interests.

Positives

• The acquisition of phantom stock units aligns the director's interests with those of the shareholders.
• The deferred compensation plan incentivizes long-term commitment from the director.

Future Outlook

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

Industry Context

Director compensation packages often include equity-based awards like phantom stock units to align management's interests with shareholder value and encourage long-term performance.

Comparison to Industry Standards

• Many companies, including peers like International Paper and WestRock, utilize deferred compensation plans with equity-based components for their directors.
• The specific number of phantom stock units awarded and the vesting schedule are likely determined based on Sonoco's compensation policies and industry benchmarks for director compensation.

Stakeholder Impact

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

Key Dates

Keywords

phantom stock units, director compensation, Form 4, Sonoco Products Co, Theresa J. Drew, beneficial ownership, deferred compensation, equity securities