Form 4: Verizon CFO Acquires Phantom Stock Through Deferred Compensation Plan

Verizon's Executive Vice President and CFO, Anthony T. Skiadas, acquired 148.054 units of phantom stock, equivalent to 42 shares of common stock, through a deferred compensation plan.

Summary

• Anthony T. Skiadas, Verizon's Executive Vice President and Chief Financial Officer, acquired 148.054 units of phantom stock.
• The acquisition occurred on July 17, 2025, and was reported on July 18, 2025.
• Each phantom stock unit was valued at $11.69 for this transaction.
• The 148.054 phantom stock units acquired are economically equivalent to 42 shares of Verizon common stock.
• The transaction was made pursuant to a contract, instruction, or written plan for the purchase or sale of equity securities, intended to satisfy the affirmative defense conditions of Rule 10b5-1(c).
• Following this transaction, Skiadas beneficially owns a total of 125,491.652 phantom stock units indirectly through a deferred compensation plan.
• Phantom stock units are the economic equivalent of a portion of one common stock share and are settled in cash.
• The total beneficial ownership includes phantom stock units acquired through dividend reinvestment.

Sentiment

Score: 7

Explanation: The acquisition of phantom stock by a key executive is generally a positive signal of confidence, aligning management's interests with shareholders. It's a routine compensation event, not a direct market signal, hence a moderately positive score.

Positives

• The acquisition of phantom stock by a key executive (CFO) can signal confidence in the company's future performance and strategic direction.
• The transaction was made under a Rule 10b5-1 plan, indicating a pre-arranged, non-discretionary acquisition, which enhances transparency and mitigates concerns about opportunistic insider trading.
• The increase in beneficial ownership through a deferred compensation plan aligns executive incentives with long-term shareholder value, as the value of these units is tied to the company's stock performance.

Risks

• The value of phantom stock is directly tied to the performance of Verizon's common stock, exposing the holder to market fluctuations and potential declines in value.
• Phantom stock is settled in cash, not actual shares, meaning the holder does not possess direct voting rights or equity ownership until the units are settled.

Future Outlook

The acquisition of phantom stock by a key executive, particularly under a Rule 10b5-1 plan, suggests a long-term commitment and alignment with the company's future performance, as the value of these units is tied to Verizon's common stock.

Management Comments

• Each share of phantom stock is the economic equivalent of a portion of one share of common stock and is settled in cash.
• The shares of phantom stock become payable upon events established by the reporting person in accordance with the deferred compensation plan.
• Includes phantom stock acquired through dividend reinvestment.

Industry Context

This transaction is a routine executive compensation event within the telecommunications industry, where phantom stock and deferred compensation plans are common tools to align executive incentives with shareholder interests without immediate equity dilution. It does not directly reflect broader industry trends but rather internal corporate governance and compensation strategies.

Comparison to Industry Standards

• The use of phantom stock as a component of executive compensation is a common practice across large, established companies, including those in the telecommunications sector like AT&T and T-Mobile, to provide equity-like incentives without granting actual shares immediately.
• Deferred compensation plans, through which these phantom stock units are held, are standard mechanisms for executives to defer income and align long-term interests with company performance, similar to practices at other major corporations.
• The acquisition under a Rule 10b5-1 plan is a standard compliance measure for insiders to trade company securities in a pre-arranged manner, mitigating concerns about insider trading, a practice widely adopted by executives across all industries.

Stakeholder Impact

• Shareholders: The acquisition of phantom stock by a key executive aligns management's long-term incentives with shareholder value, as the value of these units is tied to the company's stock performance.

Next Steps

• The phantom stock units will become payable upon events established by the reporting person in accordance with the deferred compensation plan.

Key Dates

Recommendation

Keywords

Verizon Communications Inc., VZ, Anthony T. Skiadas, SEC Form 4, Insider Trading, Phantom Stock, Deferred Compensation, Executive Compensation, Rule 10b5-1, Stock Acquisition