Form 4: Altair Engineering Inc. Executive Gilma Saravia Reports Stock and Option Grants

Gilma Saravia, Chief People Officer of Altair Engineering Inc., reports the grant of stock options and restricted stock units.

Summary

• On March 15, 2024, Gilma Saravia, Chief People Officer of Altair Engineering Inc., received 3,808 Class A Common Stock restricted stock units.
• These restricted stock units vest in four equal annual installments starting March 15, 2025.
• Saravia also received 9,521 Class A Common Stock options with an exercise price of $79.03 on the same date.
• These options also vest in four equal annual installments commencing March 15, 2025, and expire on March 15, 2034.
• Following these transactions, Saravia directly owns 9,521 derivative securities and beneficially owns 18,917 shares of Class A Common Stock, including 8,505 unvested restricted stock units.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, which is generally viewed neutrally to positively as it aligns management with shareholder interests. The sentiment is slightly positive due to the incentive structure.

Positives

• The grant of stock options and restricted stock units aligns the executive's interests with those of the shareholders.
• The vesting schedule encourages long-term commitment from the executive.

Industry Context

Stock grants and options are a common form of executive compensation in the technology industry, aligning management's interests with shareholder value.

Comparison to Industry Standards

• Executive compensation packages, including stock options and restricted stock units, are standard practice among publicly traded technology companies like Altair Engineering.
• Companies such as Ansys, Autodesk, and Dassault Systèmes also utilize similar equity-based compensation to incentivize and retain key personnel.
• The vesting schedules and grant sizes are generally benchmarked against industry peers to ensure competitiveness and alignment with performance goals.

Stakeholder Impact

• The stock and option grants incentivize the executive to improve company performance, potentially benefiting shareholders.
• Employees may view the grants as a positive sign of the company's commitment to its leadership.

Key Dates