Form 4: Verizon Executive Acquires Phantom Stock Units Through Deferred Compensation Plan

A Verizon executive, Sowmyanarayan Sampath, acquired phantom stock units through a deferred compensation plan, as detailed in a recent SEC filing.

Summary

• Sowmyanarayan Sampath, an Executive Vice President and Group CEO at Verizon, acquired 179.236 units of phantom stock on January 16, 2025.
• These phantom stock units are economically equivalent to a portion of one share of Verizon's common stock and will be settled in cash.
• The acquisition was made through a deferred compensation plan, and the units become payable upon events established by the reporting person.
• The price of the phantom stock was $10.94 per unit.
• Following the transaction, Sampath's total holdings include 113,398.672 phantom stock units, including those acquired through dividend reinvestment.

Sentiment

Score: 7

Explanation: The document reflects a routine executive compensation transaction, which is generally neutral to positive for the company's long-term prospects. The sentiment is not overly positive or negative.

Positives

• The acquisition of phantom stock units aligns the executive's interests with the company's performance.
• The deferred compensation plan allows for long-term incentives for the executive.

Industry Context

Executive compensation through stock-based awards is a common practice in the telecommunications industry to incentivize performance and align management interests with shareholders.

Comparison to Industry Standards

• Many large telecommunications companies use similar deferred compensation plans and phantom stock awards as part of their executive compensation packages.
• Companies like AT&T and T-Mobile also utilize stock-based compensation to attract and retain top talent.
• The specific terms and conditions of these plans can vary, but the general concept of aligning executive pay with company performance is a common industry practice.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders as it aligns executive interests with company performance.
• The transaction has no direct impact on employees, customers, suppliers, or creditors.

Key Dates

Keywords

phantom stock, deferred compensation, executive compensation, SEC Form 4, Verizon, Sowmyanarayan Sampath