Form 4: Advanced Energy EVP Reports Equity Vesting, New Grants

Advanced Energy Industries' EVP, General Counsel, Vonne Elizabeth Karpinski, reported routine equity compensation transactions including RSU vesting, tax payments, deferrals, and new equity grants.

Summary

• EVP, General Counsel Vonne Elizabeth Karpinski reported multiple equity transactions on March 1, 2026, involving Advanced Energy Industries Inc. (AEIS) common stock and derivative securities.
• Transactions included the vesting of 1,959 Restricted Stock Units (RSUs) from a March 1, 2024 grant and 1,377 RSUs from a March 1, 2025 grant.
• A total of 2,033 shares of common stock were disposed of to cover tax liabilities incident to RSU vesting, at a price of $335.57 per share.
• Karpinski deferred 437 shares from a March 1, 2023 RSU vesting and 590 shares from a March 1, 2025 RSU vesting into phantom stock, totaling 1,027 phantom stock units.
• New grants were issued on March 1, 2026, consisting of 2,656 employee RSUs and 2,655 performance share awards under the Company's Amended and Restated 2023 Omnibus Incentive Plan.
• Following these transactions, beneficial ownership of common stock stands at 12,579 shares, which includes 29.832 shares acquired through the Dividend Reinvestment Plan.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a moderately positive event, reflecting routine executive compensation and continued alignment of management incentives with shareholder interests through new equity grants, without indicating any significant operational or financial shifts.

Positives

• The reporting person received new grants of 2,656 Restricted Stock Units and 2,655 performance share awards, indicating continued long-term incentive alignment with company performance.
• Ongoing RSU vesting demonstrates the company's commitment to its equity compensation plan and retention of key executives.

Negatives

• A significant number of shares (2,033) were disposed of to cover tax liabilities, which is a common occurrence but reduces direct share ownership.

Future Outlook

The new grants of Restricted Stock Units and performance share awards are designed to vest over future periods, aligning executive incentives with the company's long-term performance and strategic goals. The RSUs will vest in three equal installments beginning on the first anniversary of the grant date, while performance units have a three-year performance period.

Industry Context

StockSavvy.ai notes that the reported transactions reflect standard equity compensation practices for publicly traded companies, designed to incentivize and retain key executives. The mix of RSUs and performance units is a common approach to balance time-based retention with performance-based achievement, aligning executive interests with shareholder value creation.

Comparison to Industry Standards

• Equity compensation, including Restricted Stock Units (RSUs) and performance share awards, is a widely adopted practice across industries for executive remuneration, comparable to programs at companies like Intel, NVIDIA, or Texas Instruments in the semiconductor and technology sectors.
• The vesting schedules (e.g., three equal installments over three years for RSUs, three-year performance period for performance units) are typical for long-term incentive plans, aiming to foster sustained performance and executive retention.
• The deferral of common stock into phantom stock units, as seen with 1,027 units, is a common feature in executive deferred compensation plans, offering tax planning flexibility and aligning with best practices for executive wealth management.

Stakeholder Impact

• Shareholders: The new equity grants align the interests of the EVP, General Counsel, with shareholders by tying a portion of compensation to the company's future stock performance and strategic achievements.
• Employees: The equity compensation plan serves as a model for executive incentives, potentially influencing broader employee compensation strategies and retention efforts.

Next Steps

• Future vesting of the newly granted 2,656 employee RSUs, which will occur in three equal installments beginning on the first anniversary of the March 1, 2026 grant date.
• Future vesting of the newly granted 2,655 performance share awards, which will vest in all or in part upon achievement of performance metrics over a three-year performance period.

Key Dates

Recommendation

This Form 4 details routine insider compensation activities, including RSU vesting, tax-related sales, deferrals, and new equity grants. Such transactions are expected and do not typically signal a material change in the company's fundamentals or outlook that would warrant a change in investment recommendation. Investors should continue to hold based on broader company performance and market conditions.

Keywords

Advanced Energy Industries, AEIS, Insider Transaction, Form 4, Restricted Stock Units, RSU, Performance Units, Phantom Stock, Equity Compensation, Executive Compensation