Form 4: Verizon Executive Sowmyanarayan Sampath Reports Acquisition of Phantom Stock

EVP and Group CEO of Verizon Consumer, Sowmyanarayan Sampath, reports acquiring phantom stock units equivalent to 45 shares of common stock through a deferred compensation plan.

Summary

• On September 12, 2024, Sowmyanarayan Sampath, EVP and Group CEO-VZ Consumer at Verizon Communications Inc., acquired phantom stock units.
• The acquisition was made through a deferred compensation plan.
• The transaction involved 45 phantom stock units, each equivalent to a portion of one share of common stock.
• The price of the phantom stock was $12.51 per unit.
• Following the transaction, Sampath beneficially owns 110,102.806 phantom stock units indirectly through a deferred compensation plan, including shares acquired through dividend reinvestment.
• The phantom stock is settled in cash and becomes payable upon events established by the reporting person in accordance with the deferred compensation plan.

Sentiment

Score: 6

Explanation: The document is a routine regulatory filing, so the sentiment is neutral. It reflects standard executive compensation practices.

Positives

• The acquisition of phantom stock aligns the executive's interests with the company's performance.
• The deferred compensation plan provides a mechanism for long-term incentive compensation.

Future Outlook

The phantom stock becomes 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 align executive incentives with shareholder value. This Form 4 filing provides transparency into the equity-based compensation of a key executive at Verizon.

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 and T-Mobile.
• These companies often use a mix of salary, bonus, and equity-based compensation to attract and retain top talent.
• The specific terms of the phantom stock plan, such as the vesting schedule and payout conditions, would need to be compared to those of other companies to fully assess its competitiveness.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders by aligning executive compensation with company performance.

Key Dates