Form 4: Applied Materials CFO Hill Brice Reports Stock Transaction

Applied Materials' CFO, Hill Brice, reports the automatic withholding of shares to cover tax obligations upon vesting of restricted stock units.

Summary

• On April 1, 2024, Applied Materials CFO Hill Brice had 11,069 shares of common stock withheld to cover tax obligations related to vesting restricted stock units.
• The transaction was exempt under Rule 16b-3.
• Following the transaction, Hill Brice directly owns 128,307 shares of Applied Materials common stock.
• This total includes 98,931 performance share units and restricted stock units that will convert into common stock upon vesting in the future.
• 57,539 restricted stock units are scheduled to vest in installments in April 2025 and December 2024 through 2026.
• 41,392 performance share units are scheduled to vest in installments in December 2025 and 2026, with the actual number of shares vesting potentially ranging from 0% to 200% of the target amount based on performance goals.

Sentiment

Score: 5

Explanation: The document is a standard regulatory filing detailing a routine stock transaction. It doesn't contain information that would significantly impact investor sentiment positively or negatively.

Future Outlook

Future vesting of restricted stock units and performance share units will increase Hill Brice's holdings of Applied Materials common stock, contingent on continued employment and achievement of performance goals.

Industry Context

This Form 4 filing is a routine disclosure related to executive compensation and stock ownership, common in publicly traded companies like Applied Materials. It provides transparency into the transactions of company insiders.

Comparison to Industry Standards

• Executive compensation packages including restricted stock units and performance share units are standard practice among publicly traded companies, particularly in the technology sector.
• Companies like ASML, Lam Research, and Tokyo Electron also utilize similar equity-based compensation to align executive interests with shareholder value.
• The vesting schedules and performance metrics associated with these units are typically benchmarked against industry peers to ensure competitiveness and effectiveness.

Stakeholder Impact

• The transaction has a minimal direct impact on shareholders, employees, customers, suppliers, or creditors.
• It provides transparency regarding executive compensation and stock ownership, which can be of interest to shareholders.

Key Dates