Form 4: Walgreens Boots Alliance Director Valerie Jarrett Reports Acquisition of Phantom Stock Units

Director Valerie Jarrett reports acquiring phantom stock units in Walgreens Boots Alliance, Inc. as part of non-employee director compensation.

Summary

• On July 10, 2024, Valerie Jarrett, a director of Walgreens Boots Alliance, Inc. (WBA), acquired 2,220.25 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 economically equivalent to one share of WBA's common stock.
• The price of the phantom stock units was $11.26.
• Following the transaction, Jarrett beneficially owns 35,155.7 phantom stock units, including units issued in lieu of dividends.
• The phantom stock units will be settled following termination of service as a director, according to the terms of the Plan.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The filing indicates standard director compensation practices, aligning director interests with shareholders. There are no immediate negative implications.

Positives

• The acquisition of phantom stock units aligns the director's interests with those of the shareholders.
• The compensation structure is part of a pre-existing plan, suggesting transparency and governance.

Future Outlook

The phantom stock units will be settled following termination of service as a director in accordance with the terms and conditions 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. This encourages long-term value creation and responsible corporate governance.

Comparison to Industry Standards

• Companies like CVS Health and Rite Aid also utilize stock-based compensation for their directors.
• The specific amount and terms of the phantom stock units are likely benchmarked against peer companies to ensure competitive compensation for board members.
• The 2021 Omnibus Incentive Plan is a standard mechanism for granting equity-based awards, similar to plans used by other large corporations.

Stakeholder Impact

• Shareholders: Aligns director's interests with shareholder value.
• Employees: No direct impact.
• Customers: No direct impact.
• Suppliers: No direct impact.
• Creditors: No direct impact.

Key Dates