Form 4: Verizon Executive Reports Acquisition of Phantom Stock

Joseph J. Russo, EVP & President of Global Networks & Technology at Verizon, reported the acquisition of phantom stock units equivalent to 23 shares of common stock on May 9, 2024.

Summary

• On May 9, 2024, Joseph J. Russo, an Executive Vice President at Verizon Communications Inc., reported acquiring phantom stock units.
• The acquisition involved 82.305 units of phantom stock, each equivalent to a portion of one share of common stock, settled in cash.
• The price of the phantom stock was $11.36 per unit.
• Following the transaction, Russo beneficially owns 48,643.84 derivative securities, including phantom stock acquired through dividend reinvestment, held indirectly through a deferred compensation plan.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive as it reflects routine executive compensation practices. The acquisition of phantom stock suggests confidence in the company's future performance.

Positives

• The acquisition of phantom stock aligns the executive's interests with the company's performance.
• The deferred compensation plan allows for long-term wealth accumulation tied to Verizon's stock performance.

Industry Context

Executive compensation packages often include stock options, restricted stock, or phantom stock to incentivize performance and align executive interests with shareholder value. Phantom stock is a common tool used to provide executives with benefits similar to stock ownership without actually issuing shares.

Comparison to Industry Standards

• Executive compensation structures vary across the telecommunications industry.
• Companies like AT&T and T-Mobile also utilize equity-based compensation, but the specific mix of stock options, restricted stock, and phantom stock can differ based on company performance, executive roles, and strategic objectives.
• Benchmarking against peers involves analyzing the total compensation package, including base salary, bonus, and equity awards, to ensure competitiveness and alignment with shareholder interests.

Stakeholder Impact

• The acquisition of phantom stock aligns executive interests with shareholder value, potentially leading to better company performance.
• Employees may view executive compensation packages as a reflection of the company's commitment to its leadership.

Key Dates