Form 4: Applied Materials Director Rani Borkar Reports Acquisition of Restricted Stock Units

Director Rani Borkar reports the acquisition of 1,128 restricted stock units in Applied Materials, Inc. through an automatic annual grant.

Summary

• On March 7, 2024, Rani Borkar, a director of Applied Materials, Inc., acquired 1,128 shares of common stock in the form of restricted stock units.
• These restricted stock units were granted automatically as part of the company's Employee Stock Incentive Plan for non-employee board members.
• The restricted stock units will vest on March 1, 2025, converting into shares of Applied Materials common stock on a one-for-one basis, contingent upon continued service as a director.
• Following the transaction, Rani Borkar directly owns 1,128 shares of common stock and indirectly owns 6,488 shares through a family trust.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive as it reflects standard director compensation practices and aligns director interests with shareholders.

Positives

• The acquisition of restricted stock units aligns the director's interests with those of the shareholders.
• The vesting schedule encourages continued service and commitment to the company.

Future Outlook

The restricted stock units will convert to common stock on March 1, 2025, contingent on continued service as a director.

Industry Context

This filing is a routine disclosure related to director compensation and is typical for publicly traded companies like Applied Materials.

Comparison to Industry Standards

• Director compensation packages often include stock options and restricted stock units to align director interests with shareholder value.
• Companies like Texas Instruments (TXN) and Intel (INTC) also utilize similar stock-based compensation plans for their board members.
• The vesting schedule of approximately one year is a common practice in the industry to ensure continued commitment from directors.

Stakeholder Impact

• The acquisition of restricted stock units by a director can be viewed positively by shareholders as it aligns the director's interests with the company's long-term success.

Key Dates