Form 4: UFP Industries CFO Michael Cole Accrues Additional Phantom Stock Units

UFP Industries' Chief Financial Officer, Michael R. Cole, accrued 14 additional phantom stock units under the company's deferred compensation plan, increasing his beneficial ownership to 31,617 units.

Summary

• Michael R. Cole, Chief Financial Officer of UFP Industries Inc. (UFPI), accrued 14 phantom stock units.
• The transaction date for the accrual of these units was June 30, 2025.
• Each phantom stock unit is convertible on a 1-for-1 basis into shares of UFP Industries Common Stock.
• The units were accrued under the Company's Deferred Compensation Plan.
• These phantom stock units are payable in shares of Common Stock upon the reporting person's death, disability, or retirement.
• The price of the derivative security for this transaction was $99.36 per unit.
• Following this reported transaction, Michael R. Cole's beneficial ownership of derivative securities totals 31,617 phantom stock units.
• The total beneficial ownership includes shares acquired through a dividend reinvestment plan.

Sentiment

Score: 7

Explanation: The accrual of phantom stock units for a key executive like the CFO is generally a positive sign, indicating continued alignment of interests and long-term commitment. It's a routine compensation event, not indicative of major operational changes, hence a moderately positive score.

Positives

• The accrual of phantom stock units aligns management's long-term interests with shareholder value, as these units are payable in common stock.
• Participation in a deferred compensation plan indicates a continued commitment by the Chief Financial Officer to the company's future performance.

Future Outlook

The phantom stock units are structured as a long-term incentive, payable in shares of the Company's Common Stock upon the reporting person's death, disability, or retirement.

Industry Context

This filing reports a standard executive compensation mechanism involving deferred compensation through phantom stock units, a common practice across various industries designed to align executive incentives with long-term company performance and retention.

Comparison to Industry Standards

• Phantom stock units are a widely utilized form of equity-based compensation in corporate executive packages, aligning executive interests with shareholder returns without immediate share issuance.
• The structure, deferring payment until specific events (death, disability, retirement), is typical for long-term incentive plans aimed at executive retention and commitment.

Stakeholder Impact

• Shareholders: The accrual of phantom stock units aligns the CFO's long-term interests with shareholder value, as the units are payable in common stock, potentially fostering sustained performance.

Next Steps

• The phantom stock units will convert to common stock upon the reporting person's death, disability, or retirement.

Key Dates

Recommendation

Keywords

UFP Industries, UFPI, Form 4, SEC filing, insider transaction, phantom stock units, deferred compensation, executive compensation, Michael R. Cole, Chief Financial Officer