Form 4: Sonoco Director Thomas E. Whiddon Reports Acquisition of Phantom Stock Units

Director Thomas E. Whiddon reports acquisition of phantom stock units under Sonoco's deferred compensation plan.

Summary

• On July 1, 2024, Thomas E. Whiddon, 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 units are to be settled in Sonoco Products Company common stock 6 months after Whiddon's retirement.
• The price of the underlying common stock at the time of acquisition was $50.31.
• Following the transaction, Whiddon beneficially owns 58,244.2 derivative securities.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The acquisition of phantom stock units is a routine event and indicates alignment of the director's interests with the company's long-term performance.

Positives

• The acquisition of phantom stock units aligns the director's interests with the long-term performance of the company.
• The deferred compensation plan provides a mechanism for accumulating wealth tied to the company's stock performance.

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

Directors often receive stock-based compensation to align their interests with shareholders and incentivize long-term value creation. Phantom stock units are a common form of deferred compensation.

Comparison to Industry Standards

• Many companies in the packaging industry, such as International Paper and WestRock, utilize similar deferred compensation plans for their executives and directors.
• These plans often involve stock options, restricted stock units, or phantom stock units that vest over time or upon retirement.
• The specific terms and conditions of these plans can vary widely depending on the company's size, financial performance, and compensation philosophy.

Stakeholder Impact

• The acquisition of phantom stock units by a director can have a positive impact on shareholders by aligning management's interests with long-term value creation.

Key Dates