Form 4: Sonoco Director Adds Phantom Stock Units
Insider Transaction Report
Sonoco Products Co. director Blythe J. McGarvie acquired 842.2 phantom stock units, increasing her beneficial ownership to 31,374.2 units.
Summary
- Blythe J. McGarvie, a Director of Sonoco Products Co. (SON), acquired 842.2 phantom stock units.
- The transaction occurred on October 1, 2025.
- Each phantom stock unit is the economic equivalent of one share of Sonoco Products Company common stock.
- The units were accrued under the Sonoco Products Company directors deferred compensation plan.
- These units are to be settled in Sonoco Products Company common stock 6 months after McGarvie's retirement.
- Following this transaction, McGarvie beneficially owns a total of 31,374.2 phantom stock units.
- The price of the derivative security (phantom stock unit) was $43.04.
Sentiment
Score: 6
Explanation: The increase in beneficial ownership by a director, even through a deferred compensation plan, generally signals continued alignment of interests with shareholders.
Positives
- Increased beneficial ownership by a director, aligning interests with shareholders.
- Accrual under a deferred compensation plan indicates a structured approach to executive incentives.
Negatives
- Not a direct open market purchase, so it does not reflect a direct cash investment by the insider.
- Settlement is deferred until retirement, meaning immediate liquidity or direct market impact is absent.
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
This is a routine insider transaction filing (Form 4) for a director's deferred compensation, common practice across various industries for aligning executive and director interests with shareholders. It does not provide broader industry trends.
Corporate Governance
| Change Type | Description | Effective Date | Impact Assessment |
|---|---|---|---|
| Compensation Plan Reference | The transaction occurred under the Sonoco Products Company directors deferred compensation plan, which is a component of corporate governance related to executive and director compensation. No changes to the plan or governance structure are reported. | 10/01/2025 | Reinforces existing director compensation structure and alignment with long-term company performance. |
Related Party Transactions
- The acquisition of phantom stock units by a director under a company deferred compensation plan constitutes a related party transaction.
Stakeholder Impact
- Shareholders: Increased alignment of a director's financial interests with shareholder value due to higher beneficial ownership.
- Employees: No direct impact on general employees.
- Customers/Suppliers/Creditors: No direct impact.
Next Steps
- Settlement of phantom stock units in Sonoco Products Company common stock 6 months after the reporting person's retirement.
Key Dates
| Date | Description |
|---|---|
| 10/01/2025 | Date of transaction for phantom stock unit acquisition. |
| 10/02/2025 | Date the Form 4 was signed by Power of Attorney. |
Keywords
Sonoco Products Co, SON, insider transaction, Form 4, phantom stock units, deferred compensation, director ownership, beneficial ownership
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