Form 4: Allegro MicroSystems SVP, CTO Michael Doogue Reports Stock Transactions
SEC Form 4 Filing
Michael Doogue, SVP and CTO of Allegro MicroSystems, reports acquisition of shares through performance-vesting restricted stock units and disposition of shares to cover tax obligations.
Summary
- On May 15, 2024, Michael Doogue, SVP and CTO of Allegro MicroSystems, acquired 24,626 shares of common stock related to performance-vesting restricted stock units (PSUs).
- These PSUs were granted on May 7, 2021, May 16, 2022, and May 15, 2023, and vest over a three-year period based on the company's performance.
- The Compensation Committee determined that the performance goals for the period ending March 29, 2024, were met for the aggregate number of shares.
- Following certification, the certified portion of the awards remain subject to time-based vesting conditions, with portions vesting on May 16, 2024, May 16, 2025, and May 16, 2026.
- On May 16, 2024, Doogue disposed of 19,110 shares of common stock at a price of $29.75 to cover taxes due upon the vesting of PSUs and restricted stock units.
- Following these transactions, Doogue directly owns 69,270 shares and indirectly owns 201,702 shares through the Michael C. Doogue Revocable Trust of 2015.
Sentiment
Score: 7
Explanation: The document reflects standard executive compensation practices and stock transactions, indicating a neutral to slightly positive sentiment as it confirms the executive's continued stake in the company's performance.
Future Outlook
The remaining amounts of the PSUs are scheduled to vest in part on May 16, 2025, and May 16, 2026.
Industry Context
This filing is a routine disclosure of stock transactions by a company executive, which is common in publicly traded companies. It provides transparency into the executive's holdings and transactions in the company's stock.
Comparison to Industry Standards
- Executive compensation packages often include stock options and restricted stock units to align management's interests with those of shareholders.
- The vesting schedules and performance-based criteria for these awards are typical in the technology industry.
- Companies like Texas Instruments (TXN) and Analog Devices (ADI) also use similar equity-based compensation plans for their executives.
Stakeholder Impact
- The transactions have a minor impact on shareholders as they reflect routine executive compensation and tax obligations.
- Employees may view the vesting of PSUs as a positive sign of the company's performance and executive alignment.
Key Dates
| Date | Description |
|---|---|
| 05/07/2021 | Reporting Person was granted awards of performance-vesting restricted stock units ('PSUs') |
| 05/16/2022 | Reporting Person was granted awards of performance-vesting restricted stock units ('PSUs') |
| 05/15/2023 | Reporting Person was granted awards of performance-vesting restricted stock units ('PSUs') |
| 03/29/2024 | End of the period for which the Compensation Committee determined that the performance objective goals of the PSUs had been met. |
| 05/15/2024 | Reporting Person acquired 24,626 shares of common stock related to performance-vesting restricted stock units (PSUs). |
| 05/16/2024 | A portion of the awards vested and 19,110 shares were disposed of to cover tax obligations. |
| 05/17/2024 | Date of the report. |
| 05/16/2025 | Remaining amounts are scheduled to vest in part. |
| 05/16/2026 | Remaining amounts are scheduled to vest in part. |
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