Form 4: Cadence Design SVP Teng Reports Stock Activity

Cadence Design Systems' Senior Vice President, Chin-Chi Teng, reported the vesting of performance-based restricted stock units and subsequent tax-related share withholding.

Summary

• Chin-Chi Teng, Senior Vice President at Cadence Design Systems Inc. (CDNS), reported changes in beneficial ownership of common stock.
• On March 18, 2026, 39,032 shares of common stock were acquired due to performance-based restricted stock units (RSUs) meeting their performance criteria.
• An additional 7,364 shares of common stock were acquired on March 18, 2026, from performance-based RSUs that met criteria and are scheduled to vest in three equal annual installments.
• 3,546 shares of common stock were disposed of on March 18, 2026, to satisfy tax obligations arising from the vesting of performance-based RSUs.
• Following these transactions, Chin-Chi Teng beneficially owns 152,281 shares of Cadence Design Systems common stock.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a positive, routine compensation event, reflecting the successful vesting of performance-based awards for a key executive, indicating that company performance criteria were met.

Positives

• The vesting of 46,396 performance-based restricted stock units indicates that specific performance criteria set by the company were met, reflecting positively on the company's operational achievements or the executive's performance.

Negatives

• 3,546 shares were withheld to cover tax obligations, which is a standard practice but results in a reduction of the executive's direct shareholding.

Future Outlook

A portion of the acquired performance-based restricted stock units (7,364 shares) will vest in three equal annual installments on the first, second, and third anniversaries of the grant date, subject to continued service.

Industry Context

StockSavvy.ai notes that the vesting of performance-based restricted stock units is a common and widely accepted component of executive compensation packages within the technology and semiconductor design industries. This practice aligns executive incentives with shareholder interests by tying compensation directly to company performance metrics.

Comparison to Industry Standards

• Performance-based RSU programs are standard across leading technology companies, including peers like Synopsys, NVIDIA, and Adobe, which utilize similar structures to incentivize executive performance and retention.
• The practice of withholding shares for tax obligations upon vesting is also a universal standard for equity compensation across all industries, ensuring compliance with tax regulations.

Stakeholder Impact

• Shareholders: The transaction is a routine part of executive compensation and does not directly impact the company's operational or financial performance. It reflects the executive's continued alignment with shareholder interests through equity ownership.
• Employees: No direct impact on the broader employee base, but it serves as an example of executive compensation structure.

Next Steps

• The remaining 7,364 performance-based restricted stock units will vest in three equal annual installments on the first, second, and third anniversaries of their grant date, contingent on continued service.

Key Dates

Recommendation

This Form 4 filing details routine executive compensation activities, specifically the vesting of performance-based restricted stock units and subsequent tax withholding. It does not introduce new material information regarding the company's financial health, strategic direction, or operational performance that would warrant a change in investment recommendation. It confirms an executive's continued equity stake, which is generally a positive for alignment, but does not provide a catalyst for a 'buy' or 'sell' decision.

Keywords

CDNS, Cadence Design Systems, Form 4, Insider Transaction, Restricted Stock Units, Executive Compensation, Stock Vesting, Semiconductor Design