Form 4: Advanced Energy Industries Executive John Donaghey Reports Changes in Beneficial Ownership

John Donaghey, EVP of Global Sales at Advanced Energy Industries, reports changes in beneficial ownership of company stock due to vesting of restricted stock units and deferred compensation plan elections.

Summary

• On March 1, 2024, John Donaghey, EVP of Global Sales at Advanced Energy Industries, reported changes in his beneficial ownership of the company's stock.
• These changes are due to the vesting of previously granted restricted stock units and elections under the company's deferred compensation plan.
• Specifically, 876 shares of common stock were deferred under the plan, resulting in the receipt of 876 shares of phantom stock instead.
• Additionally, 348 shares were withheld for payment of tax liability related to the vesting of restricted stock units at a price of $101.2.
• Following these transactions, Donaghey directly owns 12,117 shares of common stock, including 7,397 unvested restricted units and 4,720 shares of common stock.
• He also acquired 7,837 restricted stock units and 7,837 performance units under the 2024 Long-Term Incentive Plan, as well as 876 shares of phantom stock.

Sentiment

Score: 6

Explanation: The sentiment is neutral as the filing reflects routine transactions related to executive compensation. There are no indications of significant positive or negative developments.

Positives

• The grant of 7,837 restricted stock units and 7,837 performance units under the 2024 LTI Plan indicates continued investment in the executive team.
• The deferred compensation plan allows executives to manage their tax liabilities and long-term financial planning.

Future Outlook

The restricted stock units granted on 03/01/2024 will vest in three equal installments beginning on the first anniversary of the grant date, while the performance share awards have a 3-year vest period and will vest based on achievement of performance metrics.

Industry Context

Executive compensation and stock ownership are common practices in publicly traded companies to align management's interests with those of shareholders. Form 4 filings provide transparency into these transactions.

Comparison to Industry Standards

• Executive compensation packages, including restricted stock units and performance-based awards, are standard practice among publicly traded companies like Advanced Energy Industries.
• Companies such as Applied Materials (AMAT) and Lam Research (LRCX) also utilize similar equity-based compensation plans to incentivize and retain key personnel.
• The vesting schedules and performance metrics associated with these awards are typically aligned with industry benchmarks and company-specific goals.

Stakeholder Impact

• The transactions have a minor impact on shareholders as they reflect changes in executive ownership, aligning management's interests with those of the shareholders.
• Employees may be impacted positively by the company's continued investment in its executive team.

Key Dates