Form 4: Verizon Legal Officer Acquires Phantom Stock

Verizon's EVP and Chief Legal Officer, Vandana Venkatesh, acquired 109.82 units of phantom stock through a deferred compensation plan.

Summary

• Vandana Venkatesh, Executive Vice President and Chief Legal Officer of Verizon Communications Inc. (VZ), acquired 109.82 units of phantom stock.
• The transaction occurred on December 31, 2025, and was reported on January 2, 2026.
• Each phantom stock unit was acquired at a price of $11.63.
• The acquired phantom stock units are economically equivalent to 31 shares of Verizon common stock.
• Following this acquisition, Ms. Venkatesh beneficially owns a total of 48,090.078 units of phantom stock indirectly through a deferred compensation plan.
• This total includes phantom stock units acquired through dividend reinvestment.
• Phantom stock units are cash-settled and become payable upon events established by the reporting person in accordance with the deferred compensation plan.

Sentiment

Score: 7

Explanation: The filing reports a routine acquisition of phantom stock by a key executive as part of a deferred compensation plan, indicating standard executive incentive alignment and a positive aspect of compensation structure.

Positives

• The acquisition of phantom stock aligns executive incentives with the long-term performance of Verizon, as the value of phantom stock is tied to the company's common stock.
• Participation in a deferred compensation plan is a common and beneficial component of executive compensation, offering tax deferral advantages.

Future Outlook

The acquired phantom stock units are cash-settled and will become payable upon events established by the reporting person in accordance with the deferred compensation plan.

Industry Context

The use of phantom stock and deferred compensation plans is a standard practice among large publicly traded companies, particularly in the telecommunications sector, to provide long-term incentives and retain key executives. This aligns executive interests with shareholder value creation over time.

Comparison to Industry Standards

• Many large corporations, including telecommunications peers like AT&T and T-Mobile, utilize deferred compensation plans and phantom stock as a component of their executive compensation strategies.
• The structure of cash-settled phantom stock, where units are economically equivalent to a portion of common stock, is a common design for such incentive plans across the S&P 500.
• This type of compensation is generally considered a best practice for aligning executive performance with long-term shareholder returns and for offering tax-efficient compensation.

Related Party Transactions

• The transaction involves the acquisition of phantom stock from Verizon Communications Inc. by an executive of the company, which is a common related-party transaction within the context of executive compensation plans.

Stakeholder Impact

• Shareholders: Minor positive impact as executive compensation is structured to align management's long-term interests with shareholder value.
• Employees: No direct impact on the broader employee base.
• Customers, Suppliers, Creditors: No direct impact.

Next Steps

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

Key Dates

Recommendation

This Form 4 filing details a routine executive compensation event involving the acquisition of phantom stock. It does not present new information that would fundamentally alter the investment thesis for Verizon. Such transactions are standard practice for aligning executive incentives with long-term company performance and typically have a neutral impact on short-term stock price. Therefore, a 'hold' recommendation is appropriate as this filing alone does not warrant a change in investment strategy.

Keywords

Verizon, VZ, Phantom Stock, Deferred Compensation, Executive Compensation, Insider Transaction, SEC Form 4, Vandana Venkatesh, Legal Officer