Form 4: Walgreens Boots Alliance Director John Lederer Reports Phantom Stock Unit Acquisition

Director John Lederer reports acquisition of phantom stock units as part of non-employee director compensation.

Summary

• On July 10, 2024, John Anthony Lederer, a director of Walgreens Boots Alliance, Inc., acquired 2,664.3 phantom stock units.
• These units were issued as non-employee director compensation under the company's 2021 Omnibus Incentive Plan.
• Each phantom stock unit is the economic equivalent of one share of Walgreens Boots Alliance common stock.
• The price of the phantom stock units is $11.26.
• Following the transaction, Lederer directly owns 71,477.57 phantom stock units, which includes units issued in lieu of dividends through July 1, 2024.
• The phantom stock units will be settled following termination of service as a director, in accordance with the terms of the Plan.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, which is generally viewed neutrally. The use of phantom stock units aligns director interests with shareholders, which is a positive.

Positives

• The acquisition of phantom stock units aligns the director's interests with those of the shareholders.
• The compensation plan is in accordance with the amended and restated Walgreens Boots Alliance, Inc. 2021 Omnibus Incentive Plan.

Future Outlook

The phantom stock units will be settled following termination of service as a director, in accordance with the terms of the Plan.

Industry Context

Director compensation in the form of stock and phantom stock units is a common practice among publicly traded companies to align the interests of directors with those of shareholders.

Comparison to Industry Standards

• Many companies, such as CVS Health and Rite Aid, use similar equity-based compensation plans for their directors.
• The specific number of units and the vesting schedules vary based on company size, performance, and industry practices.
• The Walgreens Boots Alliance 2021 Omnibus Incentive Plan is similar to incentive plans offered by comparable companies.

Stakeholder Impact

• The acquisition of phantom stock units by a director can positively influence shareholder confidence by aligning management's interests with those of the shareholders.

Key Dates