Form 4: Cirrus Logic Executive Scott Thomas Reports Stock Transactions

Scott Thomas, Sr VP and General Counsel at Cirrus Logic, reports the vesting of performance-based restricted stock units (PBRSUs) and restricted stock units (RSUs), along with associated tax withholding.

Summary

• On March 3, 2024, Scott Thomas, Sr VP and General Counsel of Cirrus Logic, engaged in transactions involving Cirrus Logic's common stock.
• These transactions included the vesting of 949 performance-based restricted stock units (PBRSUs) out of a target of 2,435, determined by a 39% payout percentage based on the company's total shareholder return (TSR) relative to the Philadelphia Semiconductor Index over a three-year period from March 3, 2021, to March 3, 2024.
• Additionally, 3,653 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.
• Following these transactions, Thomas directly owns 23,975 shares of Cirrus Logic common stock and 9,619 derivative securities.

Sentiment

Score: 5

Explanation: This is a routine disclosure of stock transactions by an executive, and it doesn't inherently indicate positive or negative sentiment. The vesting of equity is a normal part of compensation.

Positives

• The vesting of PBRSUs indicates that Cirrus Logic achieved some level of performance based on pre-established metrics.

Industry Context

Form 4 filings are routine disclosures required by the SEC to ensure transparency in stock transactions by company insiders. This filing provides insight into the compensation structure and equity ownership of Cirrus Logic's executives.

Comparison to Industry Standards

• Equity compensation, including RSUs and performance-based awards, is a common practice among publicly traded technology companies to align executive incentives with shareholder value.
• Companies like Texas Instruments (TXN), Analog Devices (ADI), and Qualcomm (QCOM) also utilize similar equity-based compensation plans for their executives.
• The specific vesting schedules and performance metrics vary from company to company, reflecting their unique strategic goals and industry positioning.

Stakeholder Impact

• The vesting of equity-based compensation aligns the executive's interests with those of the shareholders.
• The tax withholding related to the vesting events impacts the company's cash flow and tax liabilities.

Key Dates