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

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

Summary

• On April 1, 2024, Thomas E. Whiddon, a director of Sonoco Products Co, acquired 629.3 phantom stock units.
• These units were accrued under the Sonoco Products Company directors deferred compensation plan.
• Each phantom stock unit is equivalent to one share of Sonoco Products Company common stock.
• The units will be settled in Sonoco Products Company common stock six months after Whiddon's retirement.
• Following the transaction, Whiddon beneficially owns 57,022.4 shares of Sonoco Products Co common stock.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The filing reflects standard compensation practices and aligns director 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

Directors commonly receive stock-based compensation to align their interests with shareholders and incentivize long-term value creation. Phantom stock units are a typical component of executive compensation packages.

Comparison to Industry Standards

• Many companies, such as International Paper and WestRock, use similar deferred compensation plans for their directors.
• These plans often involve granting stock options, restricted stock units, or phantom stock units that vest over time or upon retirement.
• The specific terms of these plans, such as the vesting schedule and settlement method, can vary depending on the company's compensation philosophy and industry practices.

Stakeholder Impact

• The acquisition of phantom stock units by a director can positively influence shareholder confidence by aligning management's interests with those of the shareholders.

Key Dates