Form 4: AMAT Director McGregor Receives RSU Grant

Applied Materials Director Scott A. McGregor received an automatic annual grant of 741 restricted stock units, scheduled to vest on March 1, 2027.

Summary

• Scott A. McGregor, a Director at Applied Materials, Inc. (AMAT), acquired 741 shares of common stock.
• The transaction occurred on March 12, 2026, and represents an automatic annual grant of restricted stock units (RSUs).
• These RSUs were granted to McGregor as a non-employee member of the Board of Directors under the Applied Materials, Inc. Employee Stock Incentive Plan.
• The RSUs will convert into shares of Applied common stock on a one-for-one basis upon vesting.
• Vesting is scheduled for March 1, 2027, contingent upon McGregor's continued service as a director through that date.
• Following this transaction, McGregor beneficially owns 24,577 shares of common stock.
• The transaction was made pursuant to a Rule 10b5-1(c) plan.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a neutral to slightly positive event. It's a routine compensation filing, but it reinforces director alignment with shareholder interests, which is a positive for corporate governance.

Positives

• The grant aligns the director's interests with those of shareholders, as the value of the compensation is tied to the company's stock performance.
• It represents a standard, pre-scheduled component of non-employee director compensation, indicating stable corporate governance practices.

Risks

• The restricted stock units are subject to a vesting condition, meaning the director must continue service through March 1, 2027, to receive the shares.

Future Outlook

The future outlook for this specific transaction involves the vesting of 741 restricted stock units on March 1, 2027, contingent on the director's continued service.

Industry Context

StockSavvy.ai notes that the granting of restricted stock units to non-employee directors is a common practice across the technology and semiconductor industries. This method of compensation is widely used to attract and retain experienced board members while aligning their long-term interests with shareholder value, consistent with industry benchmarks for corporate governance and executive compensation.

Comparison to Industry Standards

• The use of restricted stock units (RSUs) for non-employee director compensation is a standard practice, comparable to compensation structures at peer companies like Intel (INTC), NVIDIA (NVDA), and Micron Technology (MU).
• The vesting schedule, typically over one year, is also consistent with common industry practices designed to ensure continued board commitment.

Corporate Governance

Related Party Transactions

• The acquisition of restricted stock units by Director Scott A. McGregor constitutes a related party transaction, as it involves compensation provided by the company to a member of its board of directors.

Stakeholder Impact

• Shareholders: Positive impact due to increased alignment of director's financial interests with the company's long-term performance.
• Employees: No direct impact from this specific director compensation filing.

Next Steps

• The 741 restricted stock units are scheduled to vest on March 1, 2027, converting into common stock, provided Scott A. McGregor remains a director.

Key Dates

Recommendation

This Form 4 filing reports a routine, pre-scheduled compensation grant to a director and does not contain any new material information that would warrant a change in an investment recommendation for Applied Materials. It reflects standard corporate governance and compensation practices.

Keywords

AMAT, Applied Materials, Form 4, insider transaction, stock grant, director compensation, restricted stock units, corporate governance