Form 4: Sonoco Director Eleni Istavridis Accrues Additional Phantom Stock Units

Sonoco Products Company Director Eleni Istavridis has accrued an additional 792.5 phantom stock units under the company's deferred compensation plan, increasing her total beneficial ownership to 12,697.2 units.

Summary

• Eleni Istavridis, a Director of Sonoco Products Company (SON), accrued 792.5 phantom stock units.
• The transaction date for this accrual was July 1, 2025.
• Each phantom stock unit is economically equivalent to one share of Sonoco Products Company common stock.
• The phantom stock units were accrued under the Sonoco Products Company directors deferred compensation plan.
• These units are to be settled in Sonoco Products Company common stock six months after the reporting person's retirement.
• The price of the derivative security (phantom stock units) was $45.74 per unit.
• Following this transaction, Eleni Istavridis beneficially owns 12,697.2 phantom stock units directly.

Sentiment

Score: 7

Explanation: The filing indicates a routine, positive event related to director compensation, showing continued alignment of interests between the director and the company's shareholders. It is not a major market-moving event but reflects stable corporate governance practices.

Positives

• The accrual of phantom stock units aligns the director's interests with those of the shareholders, as the value of these units is tied to the company's common stock performance.
• Participation in the deferred compensation plan indicates a long-term commitment from the director to the company's success.

Future Outlook

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

Management Comments

• The accrual of phantom stock units is part of the Sonoco Products Company directors deferred compensation plan, indicating a structured approach to executive and director incentives.

Industry Context

The use of phantom stock units as a component of director compensation is a common practice in publicly traded companies, designed to align the interests of directors with long-term shareholder value creation without immediate equity dilution.

Comparison to Industry Standards

• Deferred compensation plans, including those utilizing phantom stock units, are standard practice across various industries for director remuneration, aiming to foster long-term commitment and align interests with company performance.
• Companies like Procter & Gamble (PG) and Coca-Cola (KO) also utilize similar long-term incentive structures for their directors, often involving deferred stock units or phantom stock, to encourage retention and focus on sustained growth.

Corporate Governance

Related Party Transactions

• The accrual of phantom stock units by a director under the company's deferred compensation plan constitutes a transaction between a related party (director) and the company, which is a standard and disclosed compensation arrangement.

Stakeholder Impact

• Shareholders: The transaction increases the director's stake in the company, potentially leading to greater alignment of interests and a focus on long-term value creation.
• Employees: No direct impact on employees is indicated by this specific filing.

Next Steps

• The phantom stock units will be settled in Sonoco Products Company common stock six months after Eleni Istavridis's retirement.

Key Dates

Keywords

Sonoco Products Company, SON, Phantom Stock Units, Deferred Compensation Plan, Insider Transaction, Director Compensation, Beneficial Ownership, SEC Form 4