Form 4: Verizon Executive Joseph J. Russo Reports Acquisition of Phantom Stock

EVP & President of Global Networks & Technology at Verizon, Joseph J. Russo, reports acquiring phantom stock units through a deferred compensation plan.

Summary

• Joseph J. Russo, an Executive Vice President at Verizon Communications Inc., filed a Form 4 detailing changes in his beneficial ownership.
• The transaction involved the acquisition of phantom stock units on December 19, 2024, through a deferred compensation plan.
• He acquired 81.944 phantom stock units at a price of $11.41 each.
• Following the reported transaction, Russo beneficially owns 51,516.998 phantom stock units indirectly through a deferred compensation plan.
• Each phantom stock unit is the economic equivalent of one share of Verizon common stock and is settled in cash upon events established by Russo in accordance with the deferred compensation plan.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. It reflects a routine executive compensation transaction, indicating alignment of interests between management and shareholders.

Positives

• The acquisition of phantom stock aligns Russo's interests with the long-term performance of Verizon.
• Participation in the deferred compensation plan allows for tax-advantaged savings and investment.

Future Outlook

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

Industry Context

Executive compensation packages often include phantom stock or similar instruments to incentivize performance and align executive interests with shareholder value. This filing reflects a standard practice in corporate governance.

Comparison to Industry Standards

• Verizon's executive compensation practices, including the use of phantom stock, are generally in line with those of other large telecommunications companies such as AT&T (T) and Comcast (CMCSA).
• These companies often use a mix of salary, stock options, restricted stock units, and performance-based bonuses to attract and retain top talent.
• The specific terms of the deferred compensation plan and the vesting schedule for the phantom stock would need to be compared to industry benchmarks to fully assess its competitiveness.

Stakeholder Impact

• The acquisition of phantom stock aligns the executive's interests with those of shareholders, potentially driving long-term value creation.

Key Dates