Form 4: Woodward Inc. Director Acquires Phantom Stock Units Through Deferred Retainer Fees

Director Mary D. Petryszyn acquired phantom stock units in Woodward, Inc. through deferred retainer fees, as part of the company's Executive Benefit Plan.

Summary

• Mary D. Petryszyn, a director at Woodward, Inc., acquired phantom stock units on January 7, 2025.
• The acquisition was made through the deferral of her 2025 director retainer fees under the Woodward Executive Benefit Plan.
• The deferred fees were converted into 144.55 phantom stock units at a price of $178.13 per unit.
• These phantom stock units will be settled in common stock on a one-for-one basis at a future distribution date or upon separation from the company.

Sentiment

Score: 7

Explanation: The document reflects a standard transaction related to director compensation, indicating a neutral to slightly positive sentiment due to alignment of interests.

Positives

• The acquisition of phantom stock units aligns the director's interests with the long-term performance of the company.
• The use of deferred compensation demonstrates a commitment to the company's future.

Future Outlook

The phantom stock units will be settled in common stock at a future distribution date or upon separation from the company.

Management Comments

• Ms. Petryszyn elected to defer her 2025 director retainer fees, which were then invested in phantom stock units.

Industry Context

This type of deferred compensation is common for directors and executives, aligning their interests with the long-term performance of the company. It is a standard practice in corporate governance.

Comparison to Industry Standards

• Many companies use phantom stock or similar deferred compensation plans to incentivize directors and executives.
• The practice of deferring director fees into stock units is a common method to align director interests with shareholder value.
• Companies like Boeing and General Electric also use similar compensation structures for their board members.

Stakeholder Impact

• The transaction aligns the director's interests with shareholders, potentially leading to better long-term performance.
• The use of phantom stock units does not have an immediate impact on employees, customers, or suppliers.

Key Dates

Keywords

phantom stock, director compensation, deferred compensation, executive benefit plan, Woodward Inc., WWD, insider trading, form 4