Form 4: Applied Materials Director Chen Xun Reports Acquisition of Restricted Stock Units

Director Chen Xun of Applied Materials reports the acquisition of 1,128 restricted stock units as part of an annual grant.

Summary

• On March 7, 2024, Chen Xun, a director of Applied Materials, Inc., acquired 1,128 shares of common stock in the form of restricted stock units.
• These units were granted automatically as part of the Applied Materials Employee Stock Incentive Plan for non-employee board members.
• The restricted stock units are scheduled to vest on March 1, 2025, contingent upon continued service as a director.
• Dr. Chen has elected to defer the receipt of these shares; upon vesting, they will be converted one-for-one into Applied Materials common stock and paid out upon his termination of service from the Applied Board.
• Following the reported transaction, Chen Xun beneficially owns 43,221 shares of Applied Materials common stock, including 25,994 previously reported restricted stock units that have vested but are deferred.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction (grant of restricted stock units) and doesn't indicate any significant positive or negative developments. The sentiment is neutral to slightly positive due to the alignment of director interests with the company.

Positives

• The acquisition of restricted stock units aligns the director's interests with the company's long-term performance.
• The vesting schedule encourages continued service and commitment from the director.

Future Outlook

The restricted stock units are scheduled to vest on March 1, 2025, subject to continued service as a director.

Industry Context

Form 4 filings are standard practice for reporting changes in beneficial ownership by company insiders, providing transparency to investors.

Comparison to Industry Standards

• Director compensation packages often include stock options and restricted stock units to align executive interests with shareholder value, a common practice among publicly traded companies like Texas Instruments (TXN) and Intel (INTC).
• The vesting schedule of these units is typical, encouraging long-term commitment, similar to arrangements seen at Lam Research (LRCX) and ASML Holding (ASML).

Stakeholder Impact

• The acquisition of restricted stock units by a director can positively influence shareholder confidence by aligning management's interests with those of the shareholders.

Key Dates