Form 4: Cirrus Logic Executive Acquires Restricted Stock and Performance Shares

Jeffrey W. Baumgartner, EVP of R&D at Cirrus Logic, acquired restricted stock units and performance shares on February 6, 2025, according to a Form 4 filing with the SEC.

Summary

• Jeffrey W. Baumgartner, an Executive Vice President at Cirrus Logic, filed a Form 4 with the SEC.
• The filing reports transactions involving restricted stock units (RSUs) and performance shares.
• On February 6, 2025, Baumgartner acquired 4,470 restricted stock units that will vest on February 6, 2028.
• He also acquired 4,470 performance stock units (PSUs) and 2,665 market stock units (MSUs).
• The number of shares received upon vesting of the PSUs and MSUs depends on the achievement of performance metrics over a three-year period.
• The PSU performance metrics are based on revenue and revenue growth in strategic markets.
• The MSU performance metrics are based on total shareholder return (TSR) relative to the Russell 3000 index.
• Following the reported transactions, Baumgartner directly owns 14,278 restricted stock units, 4,470 PSUs, and 9,787 MSUs.

Sentiment

Score: 5

Explanation: The document is a neutral regulatory filing. It doesn't inherently convey positive or negative sentiment, but rather reports factual information about executive compensation.

Positives

• The acquisition of performance-based stock units aligns Baumgartner's interests with the company's performance and shareholder value.

Future Outlook

The vesting of performance shares is contingent upon the achievement of pre-established performance metrics related to revenue growth and total shareholder return over the next three years.

Industry Context

Form 4 filings are a routine part of executive compensation and provide transparency into insider transactions. The use of performance-based equity awards is a common practice to incentivize executives to achieve company goals.

Comparison to Industry Standards

• Performance-based equity compensation is a common practice among publicly traded companies, particularly in the technology sector.
• Companies like Texas Instruments (TXN) and Analog Devices (ADI) also utilize similar performance metrics, such as revenue growth and TSR, in their executive compensation plans.
• The three-year vesting period is also a standard practice to ensure long-term alignment of executive interests with shareholder value.

Stakeholder Impact

• Shareholders may view the acquisition of performance-based equity as a positive sign, aligning executive interests with company performance.
• Employees may see this as a standard part of executive compensation.

Key Dates

Keywords

Form 4, Cirrus Logic, CRUS, Jeffrey Baumgartner, Restricted Stock Units, Performance Shares, Executive Compensation, SEC Filing