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 EVP and Group CEO at Verizon, acquired 170.962 units of phantom stock on January 2, 2025.
• These phantom stock units are economically equivalent to a portion of one share of Verizon common stock and will be settled in cash.
• The phantom stock was acquired through a deferred compensation plan and includes reinvested dividends.
• Following this transaction, Mr. Sampath beneficially owns 113,219.436 units of phantom stock through the deferred compensation plan.

Sentiment

Score: 7

Explanation: The document reflects a routine executive compensation transaction, which is generally viewed neutrally to slightly positive as it aligns executive interests with company performance.

Positives

• The acquisition of phantom stock through a deferred compensation plan aligns executive interests with the company's performance.
• The reinvestment of dividends into phantom stock indicates a long-term commitment by the executive.

Industry Context

The use of phantom stock and deferred compensation plans is a common practice for executive compensation in large public companies like Verizon.

Comparison to Industry Standards

• Many large telecommunications companies use similar deferred compensation plans to incentivize and retain key executives.
• Phantom stock units are a common tool for aligning executive compensation with shareholder value, similar to practices at companies like AT&T and T-Mobile.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders as it aligns executive interests with company performance.

Key Dates

Keywords

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