Form 4: Sonoco Director Acquires Phantom Stock Units via Deferred Plan

Sonoco Products Company Director Steven L Boyd acquired 89.2 phantom stock units through a quarterly dividend on a deferred compensation plan.

Summary

• Steven L Boyd, a Director of Sonoco Products Company (SON), acquired 89.2 phantom stock units on September 10, 2025.
• The acquisition was a quarterly dividend from the company's directors' deferred compensation plan.
• Each phantom stock unit is the economic equivalent of one share of Sonoco Products Company common stock.
• The units were acquired at a price of $46.06 per unit.
• Following this transaction, Boyd beneficially owns 7,840.4 phantom stock units directly.
• These units will be settled upon Boyd's retirement or other termination of service.

Sentiment

Score: 7

Explanation: The acquisition of phantom stock units by a director, as part of a deferred compensation plan, indicates continued alignment of management interests with shareholder value. It is a routine, non-discretionary transaction, which is generally viewed positively as it increases insider ownership.

Positives

• Director Steven L Boyd increased his beneficial ownership in the company through the acquisition of 89.2 phantom stock units, enhancing alignment with shareholder interests.
• The acquisition is part of a regular quarterly dividend from the directors' deferred compensation plan, indicating a structured and long-term incentive for the director.

Future Outlook

The phantom stock units acquired will be settled upon the reporting person's retirement or other termination of service, indicating a long-term retention and incentive mechanism.

Management Comments

• Acquired on quarterly dividend on Sonoco Products Company's directors' deferred compensation plan and will be settled upon the reporting person's retirement or other termination of service.

Industry Context

This is a routine insider transaction related to director compensation, common across publicly traded companies to align director interests with shareholders. It does not directly reflect broader industry trends beyond standard corporate governance practices for executive and director compensation.

Comparison to Industry Standards

• The use of phantom stock units as a component of director compensation and deferred compensation plans is a widely adopted practice across various industries, particularly among established public companies.
• This mechanism, where units are acquired via quarterly dividends and settled upon retirement, is a standard, non-discretionary method for directors to accumulate equity, aligning their long-term interests with shareholder value.
• Such compensation structures are common in large-cap industrial and packaging firms, reflecting a broad industry standard for executive and director incentive alignment.

Related Party Transactions

• The acquisition of phantom stock units by Director Steven L Boyd from Sonoco Products Company is a related party transaction, occurring as part of the company's established directors' deferred compensation plan.

Stakeholder Impact

• Shareholders: Increased alignment of a director's interests with long-term shareholder value through increased equity ownership.

Next Steps

• The phantom stock units will be settled upon the reporting person's retirement or other termination of service.

Key Dates

Recommendation

This Form 4 reports a routine acquisition of phantom stock units by a director as part of a deferred compensation plan. While it demonstrates continued insider alignment with shareholder interests, it is not a discretionary market purchase and therefore does not provide new fundamental information that would significantly alter the investment thesis or warrant a change from a 'hold' recommendation. It's a standard compensation event.

Keywords

Sonoco Products Company, SON, Steven L Boyd, Form 4, Insider Transaction, Phantom Stock Units, Director Compensation, Deferred Compensation, Equity Acquisition