Form 4: UFP Industries Executive David A. Tutas Reports Acquisition of Phantom Stock Units

David A. Tutas, Chief Compliance Officer, General Counsel, and Secretary of UFP Industries, reports the acquisition of phantom stock units under the company's Deferred Compensation Plan.

Summary

• On July 31, 2024, David A. Tutas, Chief Compliance Officer, General Counsel, and Secretary of UFP Industries, acquired 7 phantom stock units.
• These units were accrued under the company's Deferred Compensation Plan.
• The phantom stock units are payable in shares of UFP Industries' Common Stock upon the reporting person's death, disability, or retirement.
• The price of the phantom stock units was $131.93.
• Following the transaction, Tutas beneficially owns 18,402 phantom stock units, including units acquired through dividend reinvestment.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to executive compensation, suggesting stability and alignment of interests. The acquisition of phantom stock units is generally viewed positively as it incentivizes long-term performance.

Positives

• The acquisition of phantom stock units by a key executive signals confidence in the company's future performance.
• The Deferred Compensation Plan aligns executive compensation with long-term shareholder value.

Future Outlook

The phantom stock units are payable in shares of the Company's Common Stock until the reporting person's death, disability or retirement.

Industry Context

Executive compensation packages often include phantom stock units to align management's interests with those of shareholders. This is a common practice in publicly traded companies to incentivize long-term performance.

Comparison to Industry Standards

• Deferred compensation plans and phantom stock awards are common across the industry, with companies like Trex Company and Louisiana-Pacific also utilizing similar strategies to incentivize executives.
• The specific terms and conditions of these plans vary, but the underlying goal of aligning executive compensation with shareholder value remains consistent.

Stakeholder Impact

• The acquisition of phantom stock units by a key executive can positively influence shareholder confidence.
• Employees may view this as a positive sign of the company's commitment to its leadership.

Key Dates