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

• Valerie Jarrett, a director of Walgreens Boots Alliance, Inc. (WBA), filed a Form 4 on April 29, 2024, reporting changes in beneficial ownership.
• The report indicates that Jarrett acquired 1,420.45 phantom stock units on April 25, 2024, 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 WBA's common stock.
• The price of the phantom stock units is $17.6.
• These units will be settled following termination of service as a director, according to the plan's terms.
• Following the reported transaction, Jarrett beneficially owns 32,414 derivative securities, which includes phantom stock units issued in lieu of dividends through April 15, 2024.

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 suggests a commitment to aligning director interests with shareholder value, contributing to a slightly positive sentiment.

Positives

• The acquisition of phantom stock units aligns the director's interests with the company's performance.
• The compensation plan is part of the 2021 Omnibus Incentive Plan, suggesting a structured and approved approach to director compensation.

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 through equity-based awards like phantom stock units is a common practice in publicly traded companies to align the interests of directors with those of shareholders. This encourages long-term value creation.

Comparison to Industry Standards

• Equity compensation for board members is a standard practice among large publicly traded companies like Walgreens Boots Alliance.
• Companies such as CVS Health and Walmart also utilize stock options and restricted stock units as part of their director compensation packages.
• The specific amount and type of equity compensation can vary based on company size, performance, and industry benchmarks.

Stakeholder Impact

• The acquisition of phantom stock units by a director can positively influence shareholder confidence by aligning director interests with company performance.

Key Dates