Form 4: Peter Chung of A10 Networks Acquires Restricted Stock Units

Director Peter Chung reports acquisition of restricted stock units in A10 Networks as part of director compensation.

Summary

• Peter Chung, a director of A10 Networks, Inc., filed a Form 4 disclosing changes in beneficial ownership.
• The report indicates that Mr. Chung acquired 12,903 restricted stock units on May 9, 2024, as part of the director compensation program.
• These restricted stock units will vest on the earlier of May 9, 2025, or the date of the Issuer's next Annual Meeting, contingent upon Mr. Chung's continuous service.
• Mr. Chung indirectly holds 3,915,213 shares through Summit Partners Growth Equity Fund VIII-A, L.P., Summit Partners Growth Equity Fund VIII-B, L.P., Summit Investors I, LLC, Summit Investors I (UK), L.P., and directly holds 187,367 shares and restricted stock units.
• Mr. Chung disclaims beneficial ownership of the shares except to the extent of his pecuniary interest.

Sentiment

Score: 6

Explanation: The sentiment is neutral as it reflects a routine transaction related to director compensation. There are no indications of significant positive or negative implications.

Positives

• The acquisition of restricted stock units aligns Mr. Chung's interests with the long-term performance of A10 Networks.
• The vesting of the restricted stock units is contingent upon Mr. Chung's continued service, incentivizing his commitment to the company.

Future Outlook

The restricted stock units will vest on the earlier of May 9, 2025 or the date of the Issuer's next Annual Meeting, and will settle solely by delivery of an equal number of shares of Common Stock provided that Mr. Chung remains in continuous service with the Issuer through the vesting date.

Management Comments

• Mr. Chung holds any Common Stock and restricted stock units for the benefit of Summit Partners, L.P., which he has empowered to determine when the underlying shares will be sold and which is entitled to the proceeds of any such sales.
• Summit Partners, L.P., through a two-person Investment Committee, responsible for voting and investment decisions with respect to the Issuer, currently composed of Scott C. Collins and Peter Y. Chung, has voting and dispositive authority over the shares and restricted stock units reported herein and therefore may be deemed to beneficially own such shares and restricted stock units.
• Summit Partners, L.P., Mr. Collins and Mr. Chung each disclaim beneficial ownership of the shares of Common Stock and the restricted stock units, except to the extent of its or his respective pecuniary interest therein.

Industry Context

Form 4 filings are standard practice for reporting changes in beneficial ownership by company insiders, providing transparency to investors.

Stakeholder Impact

• The acquisition of restricted stock units by a director can signal confidence in the company's future prospects to shareholders.

Key Dates