Form 4: Sonoco Director Pamela Lewis Davies Reports Acquisition of Phantom Stock Units

Director Pamela Lewis Davies reports acquiring phantom stock units under Sonoco's deferred compensation plan.

Summary

• On July 1, 2024, Pamela Lewis Davies, a director of Sonoco Products Co, acquired 720.5 phantom stock units.
• These units were accrued under the Sonoco Products Company directors deferred compensation plan.
• The price of the underlying common stock was $50.31.
• Following the transaction, Davies directly owns 58,244.2 phantom stock units.
• These units will be settled in Sonoco Products Company common stock 6 months after the reporting person's retirement.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive as it reflects a standard director compensation practice that aligns interests with shareholders.

Positives

• The acquisition of phantom stock units aligns the director's interests with the long-term performance of the company.
• The deferred compensation plan encourages long-term commitment from directors.

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

Director compensation packages often include phantom stock units to align director interests with shareholder value and encourage long-term commitment.

Comparison to Industry Standards

• Many companies in the packaging industry, such as WestRock and International Paper, utilize deferred compensation plans and stock-based awards for their directors.
• These plans are designed to attract and retain qualified board members and align their interests with the long-term success of the company.

Stakeholder Impact

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

Key Dates