Form 4: AMAT SVP Timothy Deane Boosts Equity Holdings

Applied Materials' SVP of Applied Global Services, Timothy M. Deane, reported the acquisition of performance share units and restricted stock units, increasing his beneficial ownership.

Summary

• Timothy M. Deane, SVP of Applied Global Services at Applied Materials, Inc. (AMAT), reported several equity acquisitions on December 11, 2025.
• Acquired 7,467 common shares from performance share units (PSUs) based on achieved performance goals, scheduled to vest on December 19, 2025.
• Acquired 10,182 common shares from PSUs, with vesting scheduled for December 19, 2028, contingent on performance goals and continued employment, with actual shares ranging from 0% to 200% of the target.
• Acquired an additional 10,182 common shares from restricted stock units (RSUs), vesting in three equal annual installments starting December 19, 2026, subject to continued employment.
• Following these transactions, Deane's total beneficial ownership of Applied Materials common stock increased to 161,560 shares.
• This total includes 75,334 previously reported PSUs and RSUs with various vesting schedules through December 2027.

Sentiment

Score: 6

Explanation: The filing is a routine disclosure of executive compensation, which is generally neutral. The acquisition of performance-based awards suggests positive performance achievement, slightly elevating the sentiment.

Positives

• The acquisition of performance share units indicates the achievement of specified performance goals, reflecting positively on the company's operational execution.
• Increased equity ownership by a Senior Vice President aligns management's interests with shareholder value.
• The structure of performance-based awards incentivizes long-term performance and retention of key executives.

Risks

• Vesting of performance share units and restricted stock units is contingent on continued employment, posing a retention risk for the executive.
• The actual number of shares vesting for performance share units can range from 0% to 200% of the target amount, depending on the achievement of specified performance goals, introducing variability in executive compensation.

Future Outlook

The filing indicates future vesting events for various equity awards held by Timothy M. Deane, with schedules extending through December 2028. These future vestings are contingent on continued employment and, for performance share units, the achievement of specified performance goals.

Industry Context

Executive compensation in the technology and semiconductor industries frequently includes performance share units and restricted stock units to align executive incentives with long-term company performance and shareholder value. This filing reflects a standard practice within the sector for rewarding and retaining senior leadership.

Comparison to Industry Standards

• The use of performance share units (PSUs) and restricted stock units (RSUs) as a significant component of executive compensation is a common practice across the technology and semiconductor industries, including peers like Intel, NVIDIA, and Qualcomm.
• The structure, where PSUs are tied to specific performance goals and RSUs vest over time, is standard for incentivizing both short-term operational achievements and long-term retention and value creation.
• The potential range of 0% to 200% for PSU vesting based on performance is also a typical mechanism to strongly link executive payouts to company success.

Stakeholder Impact

• Shareholders: Increased alignment of executive interests with shareholder value through equity ownership.
• Employees: Standard executive compensation practices may influence overall company compensation philosophy.

Next Steps

• Vesting of 7,467 performance share units on December 19, 2025.
• Vesting of 12,801 previously reported performance share units in December 2025.
• Vesting of 36,524 previously reported restricted stock units in installments from December 2025 through 2027.
• Vesting of 26,009 previously reported performance share units in installments in December 2026 and 2027.
• Vesting of 10,182 restricted stock units in three equal annual installments beginning December 19, 2026.
• Vesting of 10,182 performance share units on December 19, 2028.

Key Dates

Keywords

Applied Materials, AMAT, Timothy Deane, Form 4, SEC filing, performance share units, restricted stock units, executive compensation, insider ownership, equity awards, semiconductor industry