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

Carl Jackson Alberty, EVP at Cirrus Logic, reports acquisition of restricted stock units and performance shares.

Summary

• On February 6, 2025, Carl Jackson Alberty, an Executive Vice President at Cirrus Logic, acquired restricted stock units and performance shares.
• He acquired 4,470 restricted stock units, which will vest on February 6, 2028.
• He also acquired 4,470 performance shares (PSUs) and 2,665 market stock units (MSUs).
• The number of shares received upon vesting of the PSUs and MSUs is contingent upon achieving pre-established performance metrics over a three-year period.
• The PSU performance metrics involve revenue and revenue growth within strategic markets.
• The MSU performance metrics involve total shareholder return (TSR) relative to the Russell 3000 index.
• Following the reported transactions, Alberty directly owns 14,089 restricted stock units, 4,470 performance shares (PSUs), and 9,634 market stock units (MSUs).

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, indicating confidence in the company's future performance. The sentiment is neutral to positive as it suggests alignment of executive interests with shareholder value.

Positives

• The acquisition of performance-based shares aligns the executive'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 over a three-year period, indicating a focus on future performance and strategic goals.

Industry Context

This filing is a routine disclosure of executive compensation in the form of equity, which is a common practice in the technology industry to incentivize and retain key personnel.

Comparison to Industry Standards

• Equity compensation is a standard practice among publicly traded technology companies like Cirrus Logic.
• Companies such as Texas Instruments, Analog Devices, and Qualcomm also utilize restricted stock units and performance-based equity awards to align executive compensation with company performance.
• The specific metrics used for performance-based awards (revenue growth, TSR) are common benchmarks for evaluating executive performance in the semiconductor industry.

Stakeholder Impact

• The acquisition of performance-based equity aligns executive interests with shareholder value, potentially benefiting shareholders.
• Employees may be motivated by the executive's stake in the company's success.

Key Dates