Form 4: Sonoco Director Theresa Drew Accrues Additional Phantom Stock Units

Sonoco Products Company Director Theresa J. Drew accrued an additional 792.5 phantom stock units as part of her deferred compensation plan, increasing her total beneficial ownership to 18,406.1 units.

Summary

• Sonoco Products Company Director Theresa J. Drew acquired 792.5 phantom stock units on July 1, 2025.
• These units were accrued under the Sonoco Products Company directors deferred compensation plan.
• Each phantom stock unit is economically equivalent to one share of Sonoco Products Company common stock.
• The units are valued at $45.74 per unit.
• Following this transaction, Theresa J. Drew's total beneficial ownership of phantom stock units stands at 18,406.1 units.
• The phantom stock units are scheduled to be settled in Sonoco Products Company common stock six months after the reporting person's retirement.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive. While it's a routine compensation accrual rather than a discretionary open market purchase, it signifies an increase in director's beneficial ownership, aligning their interests with shareholders and indicating continued commitment to the company.

Positives

• The acquisition of phantom stock units by a director aligns management's interests with those of shareholders, as the value of these units is tied to the company's common stock performance.
• The increase in beneficial ownership by a director can be viewed as a sign of confidence in the company's future prospects.

Future Outlook

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

Industry Context

The use of phantom stock units and deferred compensation plans is a common practice in corporate governance across various industries, serving as a mechanism to align the long-term interests of directors and executives with those of shareholders, while also providing tax deferral benefits.

Comparison to Industry Standards

• Deferred compensation plans, including those involving phantom stock units, are standard components of executive and director compensation packages in publicly traded companies, comparable to practices at peers in the packaging and industrial products sectors.
• The structure of settling units post-retirement is a common feature designed to retain talent and ensure long-term commitment.

Corporate Governance

Stakeholder Impact

• Shareholders: The increase in director's beneficial ownership through phantom stock units reinforces alignment between management and shareholder interests, potentially fostering confidence.
• Employees: No direct impact on general employees is indicated by this filing.
• Director (Theresa J. Drew): This transaction directly impacts the director's deferred compensation and future equity holdings in the company.

Next Steps

• Settlement of the phantom stock units into Sonoco Products Company common stock will occur six months after Theresa J. Drew's retirement.

Key Dates

Keywords

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