Form 4: UFP Industries CFO Michael R. Cole Reports Acquisition of Phantom Stock Units

Michael R. Cole, CFO of UFP Industries, reports acquiring 11 phantom stock units under the company's Deferred Compensation Plan.

Summary

• On March 29, 2024, Michael R. Cole, the Chief Financial Officer of UFP Industries Inc., reported a transaction involving phantom stock units.
• Cole acquired 11 phantom stock units under the Company's Deferred Compensation Plan.
• These units are payable in shares of UFP Industries' Common Stock upon death, disability, or retirement.
• The price of the transaction was $123.01.
• Following the reported transaction, Cole directly owns 30,899 derivative securities, which includes units acquired through dividend reinvestment.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. It reflects a routine transaction related to executive compensation, which is generally viewed as a positive sign of aligning management interests with shareholders.

Positives

• The acquisition of phantom stock units by the CFO aligns his interests with the long-term performance of the company.
• The Deferred Compensation Plan provides a tax-advantaged way for executives to save for retirement.

Industry Context

Executive compensation, including phantom stock units, is a common practice in publicly traded companies to incentivize and retain key personnel.

Comparison to Industry Standards

• Phantom stock plans are a fairly common form of executive compensation, especially in companies looking to conserve cash while still offering equity-like incentives.
• Compared to direct stock grants, phantom stock doesn't dilute existing shareholders until the units are settled.
• Companies like Builders FirstSource (BLDR) and Louisiana-Pacific Corporation (LPX), which operate in similar industries, also utilize various forms of equity compensation for their executives.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders by aligning the CFO's interests with the company's performance.

Key Dates