Form 4: Allegro Microsystems Director Receives RSU Grant

Allegro Microsystems director Susan D. Lynch was granted 5,932 Restricted Stock Units, increasing her beneficial ownership.

Summary

• Director Susan D. Lynch of Allegro Microsystems, Inc. (ALGM) was granted 5,932 shares of common stock in the form of Restricted Stock Units (RSUs) on August 7, 2025.
• Each RSU represents a contingent right to receive one share of common stock.
• The RSUs were granted at a price of $0, as is typical for compensation awards.
• Following this transaction, Susan D. Lynch directly beneficially owns a total of 29,516 shares of common stock.
• The RSUs are scheduled to vest on the date of the next annual meeting following the grant date.

Sentiment

Score: 6

Explanation: The sentiment is moderately positive. While a routine compensation event, it signifies continued alignment of a director's interests with the company's performance and is a standard part of corporate governance.

Positives

• The grant of Restricted Stock Units serves as a form of compensation and incentive for Director Susan D. Lynch, aligning her interests with long-term shareholder value.
• The increase in beneficial ownership by a director demonstrates continued commitment to the company.

Future Outlook

The granted Restricted Stock Units are set to vest on the date of the next annual meeting following the grant date, indicating a future milestone for the compensation.

Industry Context

This RSU grant is a standard practice in the semiconductor industry for compensating directors and executives, aiming to retain talent and align their interests with company performance.

Comparison to Industry Standards

• The grant of Restricted Stock Units (RSUs) as part of director compensation is a common practice across publicly traded companies, including those in the technology and semiconductor sectors.
• The 'at $0' price for RSUs is standard, as these are compensatory awards rather than share purchases.
• The vesting schedule tied to the next annual meeting is a typical approach for director equity awards, similar to practices at companies like Texas Instruments (TXN) or Analog Devices (ADI) for their non-employee directors.

Related Party Transactions

• The RSU grant to Director Susan D. Lynch constitutes a related party transaction, as it involves compensation provided by the company to a member of its board of directors.

Stakeholder Impact

• Shareholders: Potential minor dilution upon vesting of RSUs, but also benefit from incentivized director performance.
• Director Susan D. Lynch: Receives equity compensation, aligning her financial interests with the company's long-term success.

Next Steps

• The Restricted Stock Units will vest on the date of the next annual meeting following the grant date.

Key Dates

Keywords

Allegro Microsystems, ALGM, SEC Form 4, Restricted Stock Units, RSU grant, insider transaction, director compensation, beneficial ownership, semiconductor, integrated circuits