Form 4: Cadence Design VP Scannell Reports Stock Transactions

Cadence Design Systems' Sr. Vice President Paul Scannell reported the acquisition of common stock from vested performance-based restricted stock units and the disposition of shares for tax obligations.

Summary

• Paul Scannell, Sr. Vice President of Cadence Design Systems Inc. (CDNS), reported transactions involving common stock on March 18, 2026.
• Acquired 8,962 shares of common stock due to performance-based restricted stock units (RSUs) meeting their performance criteria.
• Acquired an additional 7,364 shares of common stock from performance-based RSUs that met criteria, which will vest in three equal annual installments on the first, second, and third anniversaries of the grant date, subject to continued service.
• Disposed of 4,492 shares of common stock at a price of $289.64 per share to satisfy tax obligations arising from the vesting of performance-based RSUs.
• Following these reported transactions, Scannell directly beneficially owns 44,446 shares of common stock.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a routine insider transaction reflecting executive compensation and tax management, with the vesting of performance-based units being a positive indicator of past performance achievement.

Positives

• Performance-based restricted stock units (RSUs) met their performance criteria, leading to the acquisition of 8,962 and 7,364 shares of common stock, indicating successful achievement of company goals.

Negatives

• 4,492 shares were disposed of to cover tax obligations, reducing the direct beneficial ownership of the reporting person.

Future Outlook

7,364 acquired 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 insider transactions, particularly those related to compensation such as RSU vesting and tax-related sales, are common occurrences and provide insight into executive holdings rather than broader market or industry trends. These events are typically part of a pre-established compensation plan.

Stakeholder Impact

• Shareholders: Provides transparency into executive compensation and changes in insider ownership.
• Employees: Reflects the company's compensation structure for executives, potentially influencing employee morale and retention.

Next Steps

• The 7,364 acquired shares are subject to future vesting in three equal annual installments on the first, second, and third anniversaries of the grant date, contingent on continued service.

Key Dates

Recommendation

This Form 4 details routine executive compensation events, specifically the vesting of performance-based restricted stock units and the subsequent sale of shares to cover tax obligations. Such transactions are common and do not typically signal a change in the company's fundamental outlook or warrant a strong investment action. Investors should consider this information as part of a broader analysis of the company's financial health and strategic direction.

Keywords

CDNS, Cadence Design Systems, Paul Scannell, Form 4, insider trading, stock transactions, RSU, restricted stock units, executive compensation