Form 4: Cirrus Logic Executive Dougherty Reports Stock Transactions

EVP Justin E. Dougherty reports acquisition and disposal of Cirrus Logic shares related to vesting of performance-based restricted stock units and restricted stock units.

Summary

• On March 2, 2025, Justin E. Dougherty, EVP of Global Operations at Cirrus Logic, Inc., reported transactions involving Cirrus Logic common stock.
• These transactions involved the vesting of performance-based restricted stock units (PBRSUs) and restricted stock units (RSUs).
• Mr. Dougherty acquired 4,079 shares of common stock from the vesting of PBRSUs and 3,031 shares from the vesting of RSUs.
• A portion of the vested shares (1,037 and 739 respectively) were withheld to satisfy tax obligations.
• Following these transactions, Mr. Dougherty beneficially owns 10,172 shares of common stock directly and 11,058 derivative securities.

Sentiment

Score: 7

Explanation: The document reflects a positive outcome regarding executive compensation tied to company performance. The vesting of PBRSUs at 167% suggests the company exceeded its performance targets. However, it's a routine filing, so the sentiment is moderately positive.

Positives

• The vesting of PBRSUs indicates that Cirrus Logic achieved certain performance metrics, specifically a 167% payout percentage based on total shareholder return (TSR) relative to the Philadelphia Semiconductor Index.

Future Outlook

There is no future outlook provided in this document.

Industry Context

This filing is a routine disclosure related to executive compensation and equity awards, common in publicly traded companies. The vesting of performance-based awards is tied to the company's performance relative to its peers in the semiconductor industry, as measured by the Philadelphia Semiconductor Index.

Comparison to Industry Standards

• Equity compensation is a standard practice in the semiconductor industry to align executive incentives with shareholder value.
• Companies like Texas Instruments (TXN), Analog Devices (ADI), and Qualcomm (QCOM) also utilize performance-based equity awards.
• The specific metrics and payout percentages vary by company, but TSR relative to a peer group is a common performance measure.

Stakeholder Impact

• Shareholders may view the vesting of PBRSUs positively, as it indicates that the company achieved its performance goals.
• Employees may be motivated by the fact that executive compensation is tied to company performance.

Key Dates