Form 4: Verizon Executive Sowmyanarayan Sampath Reports Acquisition of Phantom Stock
SEC Form 4 Filing
EVP and Group CEO of Verizon Consumer, Sowmyanarayan Sampath, reports acquiring phantom stock units equivalent to 167.625 shares of common stock through a deferred compensation plan.
Summary
- On August 29, 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 phantom stock units are economically equivalent to a portion of one share of common stock and will be settled in cash upon certain events.
- The price of the phantom stock was $11.77 per unit.
- Following the transaction, Sampath's total holdings include 109,945.091 shares of phantom stock, including those acquired through dividend reinvestment.
Sentiment
Score: 5
Explanation: The document is a routine regulatory filing regarding executive compensation, so the sentiment is neutral.
Positives
- The acquisition of phantom stock aligns the executive's interests with the company's performance.
- The deferred compensation plan provides a tax-advantaged way for the executive to accumulate wealth.
Industry Context
Executive compensation packages often include phantom stock or similar instruments to incentivize performance and align executive interests with shareholder value. This is a common practice among large publicly traded companies like Verizon.
Comparison to Industry Standards
- Many telecommunications companies use phantom stock as part of their executive compensation packages.
- Companies like AT&T and T-Mobile also utilize similar deferred compensation plans to attract and retain top talent.
- The amount of phantom stock granted to executives varies based on their role, performance, and company policy.
Stakeholder Impact
- The acquisition of phantom stock has a minimal direct impact on shareholders.
- It serves as an incentive for the executive to improve company performance, which could indirectly benefit shareholders.
Key Dates
| Date | Description |
|---|---|
| 08/29/2024 | Date of phantom stock acquisition |
| 09/03/2024 | Date of Form 4 filing |
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