Form 4: Weyerhaeuser Director Rick R. Holley Increases Holdings Through Fee Deferral Plan

Director Rick R. Holley increased his holdings in Weyerhaeuser Co. by acquiring share equivalents through the company's Fee Deferral Plan for Directors.

Summary

• Rick R. Holley, a director at Weyerhaeuser Co., acquired 8,525 share equivalents on May 10, 2024, through the company's Fee Deferral Plan for Directors.
• These share equivalents were obtained by deferring the equity portion of his annual retainer fee, which amounted to $265,000.
• The price per share equivalent was determined to be $31.085, based on the average of the high and low prices of Weyerhaeuser's common stock on the grant date.
• Holley's reported holdings include share equivalents acquired from dividend reinvestment transactions.
• Following the reported transaction, Holley beneficially owns 69,847.378 share equivalents.
• These share equivalents will be paid out in shares of Weyerhaeuser's common stock upon his termination of service as a director.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The director increasing their stake in the company is generally a good sign, indicating confidence in the company's future. The transaction itself is part of a standard compensation arrangement.

Positives

• The director's participation in the Fee Deferral Plan demonstrates confidence in the company's future performance.
• Dividend reinvestment further increases the director's stake in the company.

Future Outlook

The director will receive shares of Weyerhaeuser's common stock equivalent to the number of share equivalents upon termination of service as a director.

Industry Context

Directors often use fee deferral plans to align their interests with those of shareholders, demonstrating a long-term commitment to the company's success. This is a common practice among publicly traded companies.

Comparison to Industry Standards

• Fee deferral plans are a common practice among directors of publicly traded companies, such as Weyerhaeuser, to align their interests with shareholders.
• Similar plans are often seen at companies like International Paper (IP) and Packaging Corporation of America (PKG), where directors can elect to receive a portion of their compensation in stock or stock equivalents.
• The specific terms of these plans, such as the deferral rate and vesting schedule, can vary across companies.

Related Party Transactions

• The Fee Deferral Plan for Directors is a related party transaction, as it involves compensation to a director of the company.

Stakeholder Impact

• The director's increased stake aligns his interests more closely with those of shareholders.
• The Fee Deferral Plan is part of the overall compensation structure for directors.

Key Dates