Form 4: Alphabet Inc. Executive Philipp Schindler Reports Stock Transactions Following Performance-Based Vesting

Alphabet Inc.'s SVP, Chief Business Officer, Philipp Schindler, acquired shares and had shares withheld for taxes following the vesting of performance stock units.

Summary

• Philipp Schindler, SVP, Chief Business Officer at Alphabet Inc., reported transactions involving Class C Capital Stock and Google Stock Units.
• On February 7, 2024, Mr. Schindler acquired 194,200 shares of Class C Capital Stock at $0.00 per share due to the vesting of performance stock units (PSUs).
• The vesting was based on Alphabet's total shareholder return (TSR) performance over a three-year period ending December 31, 2023.
• Alphabet's TSR of 60.19% ranked at the 79.80th percentile relative to S&P 100 companies, resulting in a maximum payout of 200% of the target PSU award.
• Additionally, 98,050 shares were withheld at a price of $145.41 per share to cover tax obligations related to the vesting of the PSUs.
• Mr. Schindler also holds 52,640 Class C Google Stock Units that vest over time, with 1/12th vesting quarterly from March 25, 2022.
• He also holds 144,179 Class C Google Stock Units that vest over time, with 1/6th vesting on June 25, 2023 and 1/12th vesting quarterly thereafter.

Sentiment

Score: 7

Explanation: The document reflects positive performance leading to maximum vesting of stock units, but also includes tax withholdings which are a neutral event. Overall, the sentiment is positive due to the strong performance.

Positives

• The vesting of performance stock units indicates that Alphabet's performance met or exceeded the 75th percentile target, resulting in a maximum payout.
• The high TSR performance of 60.19% demonstrates strong shareholder returns over the three-year period.

Negatives

• 98,050 shares were withheld to cover tax obligations, reducing the net gain for Mr. Schindler.

Risks

• Future vesting of stock units is contingent on continued employment with Alphabet Inc.

Future Outlook

Future vesting of Google Stock Units is subject to continued employment and will occur quarterly.

Industry Context

This filing is a routine disclosure of stock transactions by a company executive, which is common practice in publicly traded companies. The performance-based vesting is a typical incentive structure to align executive compensation with shareholder value.

Comparison to Industry Standards

• Performance-based stock awards are a common practice among S&P 100 companies, aligning executive compensation with shareholder returns.
• The vesting schedule of Google Stock Units, with quarterly vesting, is a standard approach to incentivize long-term commitment from employees.
• The 75th percentile performance target for maximum payout is a relatively high bar, indicating a strong focus on performance.

Stakeholder Impact

• Shareholders benefit from the strong TSR performance that triggered the vesting of performance stock units.
• Employees, including Mr. Schindler, are incentivized by the performance-based compensation structure.

Next Steps

• Continued quarterly vesting of Google Stock Units will occur subject to continued employment.

Key Dates

Keywords

Alphabet Inc, Philipp Schindler, stock transaction, performance stock units, TSR, vesting, Class C Capital Stock, Google Stock Units, executive compensation