Merck (NYSE: MRK) director granted phantom stock in deferred pay plan
Rhea-AI Filing Summary
Karsanbhai Surendralal Lanca reported acquisition or exercise transactions in this Form 4 filing.
Merck & Co., Inc. director Karsanbhai Surendralal Lanca reported a routine compensation grant of phantom stock units and updated share holdings. The filing shows an award of 126.4591 phantom stock units tied on a 1‑for‑1 basis to Merck common stock. These phantom units are to be settled entirely in cash after the director’s termination of service, under the company’s Plan for Deferred Payment of Directors' Compensation.
Following this grant, Lanca holds 5,518.8018 phantom stock units and 1 share of Merck common stock directly. The transactions do not involve any open‑market buying or selling of Merck shares and reflect non‑cash, deferred director compensation.
Positive
- None.
Negative
- None.
Insider Trade Summary
2 transactions reported
Mixed
2 txns
Insider
Karsanbhai Surendralal Lanca
Role
Director
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Grant/Award | Phantom Stock | 126.4591 | $128.50 | $16K |
| holding | Common Stock | -- | -- | -- |
Holdings After Transaction:
Phantom Stock — 5,518.8018 shares (Direct);
Common Stock — 1 shares (Direct)
Footnotes (2)
- F1. 1-for-1
- F2. Phantom stock units are to be settled 100% in cash upon reporting person's termination of service in accordance with a distribution schedule elected pursuant to the terms of the Plan for Deferred Payment of Directors' Compensation.
Key Figures
Phantom stock units granted: 126.4591 units
Phantom units after grant: 5,518.8018 units
Common shares held: 1 share
+2 more
5 metrics
Phantom stock units granted
126.4591 units
Director compensation grant on 2026-06-30
Phantom units after grant
5,518.8018 units
Total phantom stock units held after 2026-06-30
Common shares held
1 share
Direct Merck common stock holding after 2026-06-30
Phantom grant reference price
$128.5000 per unit
Price reference for phantom stock grant
Conversion ratio
1-for-1
Phantom stock units track Merck common stock value
Key Terms
Phantom Stock, Grant, award, or other acquisition, Plan for Deferred Payment of Directors' Compensation, phantom stock units
4 terms
Phantom Stock financial
"security_title: "Phantom Stock" and described as cash-settled units"
A phantom stock is a form of compensation that gives employees or executives the benefits of stock ownership, such as the increase in stock value, without actually giving them real shares. It acts like a promise to pay the employee the equivalent value of company stock later, often as a bonus or incentive. This allows companies to motivate and reward staff without diluting ownership or transferring actual shares.
Grant, award, or other acquisition financial
"transaction_code_description: "Grant, award, or other acquisition""
Plan for Deferred Payment of Directors' Compensation financial
"terms of the Plan for Deferred Payment of Directors' Compensation"
phantom stock units financial
"Phantom stock units are to be settled 100% in cash"
Phantom stock units are company promises that pay a cash or stock-equivalent award tied to the firm’s share price or value growth, but they do not issue actual shares. Think of them as a bonus check that moves with the stock like a mirror rather than handing over an ownership slice. Investors care because these awards can affect a company’s future cash obligations, executive incentives and reported expenses without causing share dilution.
FAQ
What insider transaction did Merck (MRK) report for director Karsanbhai Lanca?
Merck reported that director Karsanbhai Surendralal Lanca received a grant of 126.4591 phantom stock units. These units are part of a deferred compensation plan and will be settled in cash after his service ends, rather than through open‑market stock purchases or sales.
How many phantom stock units does the Merck (MRK) director hold after this Form 4?
After the reported grant, director Karsanbhai Surendralal Lanca holds 5,518.8018 phantom stock units. These units track Merck’s common stock value on a 1‑for‑1 basis and are payable in cash upon his termination of service under the deferred compensation plan.
Does the Merck (MRK) Form 4 show any open‑market stock purchases or sales?
The Form 4 does not show any open‑market purchases or sales of Merck common stock. It reports a grant of phantom stock units as deferred compensation and indicates the director directly owns 1 share of Merck common stock after the reported transactions.
How are Merck (MRK) phantom stock units for directors settled under this plan?
The phantom stock units for Merck directors are settled 100% in cash after the director’s termination of service. Settlement follows a distribution schedule elected under the company’s Plan for Deferred Payment of Directors’ Compensation and is based on a 1‑for‑1 value relationship with Merck common stock.
What is the significance of the 1‑for‑1 reference in Merck (MRK) phantom stock grants?
The 1‑for‑1 reference means each phantom stock unit tracks the value of one Merck common share. Although they mirror share value, these units are cash‑settled under the deferred compensation plan and do not represent actual shares with voting rights during the director’s service.
AI-generated analysis. How Rhea-AI works. Not financial advice.
