Form 4: Sonoco Director Acquires Phantom Stock Units

Sonoco Products Co. Director John R. Haley acquired 895.7 phantom stock units through a deferred compensation plan, increasing his beneficial ownership to 78,878.5 units.

Summary

• John R. Haley, a Director of Sonoco Products Co. (SON), acquired 895.7 phantom stock units.
• The acquisition occurred on December 10, 2025, at a price of $41.93 per unit.
• These units were acquired as part of a quarterly dividend on Sonoco Products Company's directors' deferred compensation plan.
• Each phantom stock unit is economically equivalent to one share of Sonoco common stock.
• The units will be settled upon Mr. Haley's retirement or other termination of service.
• Following this transaction, Mr. Haley's beneficial ownership of derivative securities (phantom stock units) increased to 78,878.5 units.
• The transaction was made pursuant to a Rule 10b5-1(c) plan, indicating a pre-arranged trading plan.

Sentiment

Score: 6

Explanation: Slightly positive, as it indicates a director's continued participation in the company's long-term incentive plan, aligning their interests with shareholders, though it's a routine compensation event.

Positives

• The acquisition of phantom stock units by a director, even through a compensation plan, can signal continued alignment of management interests with shareholder value.
• The transaction was executed under a Rule 10b5-1(c) plan, which demonstrates a pre-planned and systematic approach to insider transactions.

Risks

• Phantom stock units do not represent actual shares until settlement, meaning the holder does not have voting rights or direct equity ownership until that time.
• The value of the phantom stock units is tied to the common stock price, exposing the holder to market fluctuations until settlement.

Future Outlook

The phantom stock units will be settled upon the reporting person's retirement or other termination of service, aligning future compensation with long-term company performance.

Industry Context

This is a routine insider transaction related to director compensation, common across publicly traded companies, and does not reflect broader industry trends or competitive shifts.

Related Party Transactions

• The acquisition of phantom stock units by Director John R. Haley through the company's deferred compensation plan constitutes a related-party transaction, as it involves compensation from the issuer to a member of its board of directors.

Stakeholder Impact

• Shareholders: The transaction reflects a director's ongoing participation in the company's long-term incentive structure, potentially aligning their interests with shareholder value over time.
• Employees: No direct impact on general employees is indicated by this filing.
• Customers/Suppliers/Creditors: No direct impact on these stakeholders is indicated by this filing.

Next Steps

• The acquired phantom stock units will be settled upon John R. Haley's retirement or other termination of service from Sonoco Products Co.

Key Dates

Recommendation

This Form 4 filing details a routine insider transaction related to director compensation through a deferred plan. It does not provide new fundamental information about the company's operations, financial performance, or strategic direction that would warrant a change in investment recommendation. It merely reflects a pre-planned compensation event for a director, which is generally neutral to slightly positive for investor sentiment due to continued alignment of interests.

Keywords

Sonoco Products Co., SON, John R. Haley, Director, Phantom Stock Units, Insider Transaction, Form 4, Deferred Compensation, Rule 10b5-1