Form 4: Cirrus Logic Executive Carl Jackson Alberty Reports Stock Transactions

Carl Jackson Alberty, an EVP at Cirrus Logic, reported the vesting of performance-based restricted stock units (PBRSUs) and restricted stock units (RSUs) on March 2, 2025, along with associated tax withholding.

Summary

• On March 2, 2025, Carl Jackson Alberty, an EVP at Cirrus Logic, reported transactions involving Cirrus Logic common stock.
• These transactions included the vesting of 4,079 shares of common stock from performance-based restricted stock units (PBRSUs).
• The vesting was determined by pre-established performance metrics over a three-year period from March 2, 2022, to March 2, 2025, based on Cirrus Logic's total shareholder return (TSR) relative to the Philadelphia Semiconductor Index.
• The TSR resulted in a 167% payout percentage of the target number of PBRSUs.
• Additionally, 3,031 restricted stock units (RSUs) vested on the same date.
• Shares were withheld to satisfy tax withholding requirements related to both the PBRSU and RSU vestings; 1,037 shares for the PBRSUs and 739 shares for the RSUs.
• Following these transactions, Alberty directly owns 43,645 shares of Cirrus Logic common stock, 7,191 performance shares, and 11,058 restricted stock units.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive as the vesting of PBRSUs at 167% suggests strong company performance. However, it's a routine filing and doesn't necessarily indicate a major shift in the company's outlook.

Positives

• The vesting of PBRSUs indicates that Cirrus Logic achieved a 167% payout percentage based on its TSR performance relative to the Philadelphia Semiconductor Index, suggesting strong performance over the three-year period.

Industry Context

Executive stock transactions are a common occurrence in publicly traded companies and are often tied to performance metrics to align executive compensation with company goals. The vesting of PBRSUs based on TSR relative to the Philadelphia Semiconductor Index is a standard practice in the semiconductor industry.

Comparison to Industry Standards

• Using TSR relative to a semiconductor index like the Philadelphia Semiconductor Index (SOX) is a common benchmark for performance-based compensation in the semiconductor industry.
• Companies like Texas Instruments (TXN), Qualcomm (QCOM), and NVIDIA (NVDA) also use similar metrics to incentivize their executives.
• The payout percentage of 167% suggests that Cirrus Logic's TSR performance was relatively strong compared to its peers in the index over the three-year period.

Stakeholder Impact

• The vesting of PBRSUs and RSUs has a minor dilutive effect on existing shareholders.
• The executive's compensation is aligned with the company's performance, which can be viewed positively by shareholders.

Key Dates