Form 4: Verizon Executive Sowmyanarayan Sampath Reports Phantom Stock Acquisition

EVP and Group CEO of Verizon Consumer, Sowmyanarayan Sampath, reports acquisition of phantom stock units through a deferred compensation plan.

Summary

• On May 9, 2024, Sowmyanarayan Sampath, EVP and Group CEO-VZ Consumer at Verizon Communications Inc., reported the acquisition of phantom stock units.
• The transaction involved the acquisition of 173.754 phantom stock units at a price of $11.36 each.
• These phantom stock units are the economic equivalent of Verizon common stock and will be settled in cash upon certain events as per the deferred compensation plan.
• Following the reported transaction, Sampath indirectly owns 106,846.891 phantom stock units through a deferred compensation plan, including those acquired through dividend reinvestment.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive as it reflects standard executive compensation practices and alignment of interests.

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 and retention.

Industry Context

Executive compensation through equity-based instruments like phantom stock is a common practice in publicly traded companies to align management's interests with shareholder value.

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 incentivize and retain key executives.
• The specific terms and conditions of phantom stock plans can vary, but the underlying principle of linking executive compensation to company performance remains consistent.

Stakeholder Impact

• The acquisition of phantom stock by a key executive can positively influence shareholder confidence by aligning management's interests with the company's long-term success.

Key Dates