Form 4: Sonoco Products Co. Director Acquires Phantom Stock Units Through Deferred Compensation Plan

Director Blythe J. McGarvie acquired 272.5 phantom stock units of Sonoco Products Co. through a quarterly dividend on the company's directors' deferred compensation plan.

Summary

• Blythe J. McGarvie, a director at Sonoco Products Co., acquired 272.5 phantom stock units.
• These units were acquired on December 10, 2024, as part of a quarterly dividend on the company's directors' deferred compensation plan.
• Each phantom stock unit is economically equivalent to one share of Sonoco Products Company common stock.
• The phantom stock units will be settled upon Ms. McGarvie's retirement or other termination of service.
• The price per unit at the time of acquisition was $51.46, resulting in a total value of $14,028.10.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, which is generally viewed neutrally to positively. It indicates alignment of interests between the director and shareholders.

Positives

• The acquisition of phantom stock units aligns the director's interests with those of the shareholders.
• The deferred compensation plan provides a long-term incentive for directors.

Future Outlook

The phantom stock units will be settled upon the director's retirement or other termination of service.

Industry Context

This type of transaction is common for directors of publicly traded companies as part of their compensation packages, aligning their interests with the long-term performance of the company.

Comparison to Industry Standards

• Deferred compensation plans, including phantom stock awards, are a standard practice for compensating directors in publicly traded companies like Sonoco Products Co.
• Companies such as International Paper and WestRock, which are also in the packaging industry, often use similar compensation methods for their board members.
• The value of the phantom stock units is based on the market price of the company's common stock, which is a common industry practice.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders as it aligns the director's interests with the company's long-term performance.

Key Dates

Keywords

phantom stock, deferred compensation, director, stock units, Sonoco Products Co., equity compensation