Form 4: Cognex SVP, CFO Dennis Fehr, Reports Stock Option and Restricted Stock Unit Grant

Dennis Fehr, SVP and CFO of Cognex Corp, reports the acquisition of stock options and restricted stock units.

Summary

• On May 6, 2024, Dennis Fehr, the SVP and Chief Financial Officer of Cognex Corporation, reported transactions involving derivative securities.
• Fehr acquired 92,092 non-qualified stock options with an exercise price of $44.49, vesting approximately 50% on May 6, 2028, and 50% on May 6, 2029, expiring on May 6, 2034.
• He also acquired 17,982 restricted stock units (RSUs), vesting approximately 20% on May 6, 2025, 30% on May 6, 2026, and 50% on May 6, 2027, contingent on relocation to Massachusetts by October 31, 2026.
• Following these transactions, Fehr directly owns 92,092 derivative securities and 17,982 restricted stock units.

Sentiment

Score: 7

Explanation: The document reflects standard executive compensation practices, indicating stability and alignment of interests. The sentiment is neutral to positive.

Positives

• The grant of stock options and restricted stock units to the CFO aligns his interests with those of the shareholders.
• The vesting schedule of the RSUs incentivizes continued employment and relocation to Massachusetts.

Risks

• The vesting of the RSUs is contingent on the reporting person relocating to Massachusetts by October 31, 2026; failure to do so could impact the vesting schedule.

Future Outlook

The document does not contain specific forward-looking statements about the company's future performance, but the equity grants suggest an intention to retain key personnel.

Industry Context

Stock option and RSU grants are common practices in the technology industry to incentivize and retain key executives.

Comparison to Industry Standards

• Stock option grants are a standard component of executive compensation packages in the tech industry, similar to companies like Keyence, National Instruments, and Teledyne Technologies.
• The vesting schedules are also typical, designed to retain talent over a multi-year period.

Stakeholder Impact

• Shareholders may view the equity grants as a positive sign, aligning management's interests with long-term company performance.
• Employees may see this as a positive sign of company stability and commitment to its leadership.

Key Dates