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., acquired 81,844 shares of Class C Capital Stock on January 9, 2025, as a result of performance stock units (PSUs) vesting.
• The vesting was based on Alphabet's total shareholder return (TSR) performance relative to S&P 100 companies over a three-year period ending December 31, 2024.
• Alphabet's TSR of 22.55% placed it at the 49.49th percentile, resulting in a 98.99% payout of the target PSU award.
• Additionally, 40,420 shares were withheld to cover tax obligations related to the vesting of the PSUs at a price of $195.39 per share.
• Schindler also holds 72,334 Class C Google Stock Units (GSUs) that vest over time, with some vesting on June 25, 2023, and quarterly thereafter, and 96,928 GSUs that vested on June 25, 2024, and September 25, 2024, with additional vesting quarterly thereafter.

Sentiment

Score: 7

Explanation: The document reflects a positive outcome for the executive due to the vesting of performance-based stock units, indicating that the company met its performance targets. However, it is a routine filing and does not indicate any significant change in the company's overall outlook.

Positives

• The vesting of performance stock units indicates that Alphabet met performance criteria related to total shareholder return.
• The executive's acquisition of shares aligns his interests with those of shareholders.

Negatives

• The withholding of 40,420 shares for tax obligations reduces the net gain for the executive.

Risks

• Future vesting of stock units is contingent on continued employment.
• The value of the stock units is subject to market fluctuations.

Future Outlook

Future vesting of GSUs is subject to continued employment and will occur quarterly.

Industry Context

This filing is a routine disclosure of executive stock transactions, common among publicly traded companies. The performance-based vesting aligns executive compensation with shareholder value creation, a common practice in the tech industry.

Comparison to Industry Standards

• Performance-based equity compensation is a standard practice among large tech companies like Alphabet, with companies such as Meta, Amazon, and Apple also using similar structures.
• The use of TSR relative to the S&P 100 as a performance metric is a common benchmark for assessing executive performance in the technology sector.
• The vesting schedules for stock units are also typical, with a mix of time-based and performance-based vesting to incentivize long-term value creation and retention.

Stakeholder Impact

• Shareholders may view the vesting of performance stock units as a positive sign that the company is meeting its performance goals.
• The executive's increased stake in the company aligns his interests with those of shareholders.

Next Steps

• Future vesting of Class C Google Stock Units will continue quarterly, subject to continued employment.

Key Dates

Keywords

Alphabet Inc., Philipp Schindler, stock units, performance stock units, PSU, GSU, vesting, shareholder return, TSR, S&P 100, executive compensation, insider trading