Form 4: Cirrus Logic Executive Reports Stock Transactions Following RSU Vesting

Jeffrey W. Baumgartner, VP of R&D at Cirrus Logic, reports the vesting of performance-based and restricted stock units, along with associated tax withholding.

Summary

• On March 3, 2024, Jeffrey W. Baumgartner, VP of R&D at Cirrus Logic, had performance-based restricted stock units (PBRSUs) and restricted stock units (RSUs) vest.
• A portion of the vested shares were withheld to satisfy tax obligations.
• The vesting of PBRSUs was determined by Cirrus Logic's total shareholder return (TSR) relative to the Philadelphia Semiconductor Index over a three-year period, resulting in a 39% payout percentage of the target number of PBRSUs.
• Mr. Baumgartner's target number of PBRSUs was 3,019, resulting in 1,177 shares of common stock vesting.
• 4,529 restricted stock units vested, each equivalent to one share of common stock.
• Following these transactions, Mr. Baumgartner directly owns 10,381 shares of common stock.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The filing reflects standard compensation practices and insider alignment with shareholder interests. There are no indications of negative events or concerns.

Positives

• The vesting of stock units indicates that Mr. Baumgartner has met certain performance or time-based criteria set by the company.
• The executive's continued direct ownership of 10,381 shares aligns his interests with those of the shareholders.

Industry Context

Form 4 filings are a routine part of corporate governance, providing transparency into the transactions of company insiders. Vesting of stock options and restricted stock units are common compensation practices in the technology industry.

Comparison to Industry Standards

• Stock-based compensation is a common practice in the semiconductor industry to attract and retain talent.
• Companies like Texas Instruments (TXN) and Analog Devices (ADI) also utilize similar compensation structures involving RSUs and performance-based incentives.
• The vesting schedules and performance metrics often vary based on company-specific goals and industry benchmarks.

Stakeholder Impact

• The vesting of shares has a minor dilutive effect on existing shareholders.
• The executive's stock ownership aligns his interests with those of the shareholders, incentivizing him to work towards increasing shareholder value.

Key Dates