Form 4: Cirrus Logic Executive Dougherty Reports Stock Transactions Following RSU Vesting
SEC Form 4 Filing
SVP of Global Operations at Cirrus Logic, Justin E. Dougherty, reports the vesting of performance-based and regular restricted stock units, along with associated tax withholding.
Summary
- On March 3, 2024, Justin E. Dougherty, SVP of Global Operations at Cirrus Logic, had performance-based restricted stock units (PBRSUs) and restricted stock units (RSUs) vest.
- The vesting of 1,060 shares was related to PBRSUs, determined by a three-year performance period ending on March 3, 2024, with a 39% payout percentage based on Cirrus Logic's total shareholder return (TSR) relative to the Philadelphia Semiconductor Index.
- Additionally, 4,077 restricted stock units vested on the same date.
- Shares were withheld to satisfy tax withholding requirements related to the vesting of both PBRSUs and RSUs.
- Following these transactions, Dougherty directly owns 9,838 shares of common stock and 9,619 derivative securities.
Sentiment
Score: 5
Explanation: This is a routine regulatory filing related to executive compensation. It doesn't contain information that would significantly impact investor sentiment positively or negatively.
Industry Context
Form 4 filings are a routine part of corporate governance, providing transparency into the transactions of company insiders. Vesting of RSUs and PBRSUs are common forms of executive compensation in the technology industry.
Comparison to Industry Standards
- Executive compensation packages including RSUs and performance-based awards are standard practice among publicly traded technology companies such as Texas Instruments (TXN), Analog Devices (ADI), and Qualcomm (QCOM).
- The vesting schedules and performance metrics tied to PBRSUs vary across companies, but typically align with long-term shareholder value creation.
- The use of TSR relative to a semiconductor index is a common benchmark for performance-based equity awards in the semiconductor industry.
Stakeholder Impact
- The vesting of RSUs and PBRSUs impacts shareholders through potential dilution.
- It also incentivizes the executive to perform in a way that benefits shareholders.
Key Dates
| Date | Description |
|---|---|
| 03/03/2021 | Start date of the three-year performance period for PBRSUs. |
| 03/03/2024 | Date of vesting for PBRSUs and RSUs, and the end date of the three-year performance period for PBRSUs. |
| 03/05/2024 | Date of the Form 4 filing. |
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