Form 4: Cognizant CFO Jatin P. Dalal Reports Stock Unit Grants

Cognizant's Chief Financial Officer, Jatin P. Dalal, reports the acquisition of restricted stock units and performance stock units.

Summary

• Jatin P. Dalal, the Chief Financial Officer of Cognizant Technology Solutions Corp, filed a Form 4 with the SEC.
• The filing reports the grant of restricted stock units (RSUs) and performance stock units (PSUs) on March 3, 2025.
• 22,153 RSUs were granted, vesting in twelve successive quarterly installments starting June 15, 2025, and fully vesting by March 15, 2028.
• 7,783 additional RSUs were granted, also vesting in twelve successive quarterly installments with a slightly different vesting schedule.
• 27,799 PSUs were granted, representing 23,572 PSUs originally granted on February 28, 2024, with the performance criteria determined to be approximately 118% satisfied on March 3, 2025.
• These PSUs will vest and settle in Class A Common Stock on March 15, 2025, contingent on continued service.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, indicating stability and alignment of interests. It's a neutral to slightly positive signal.

Positives

• The grant of RSUs and PSUs aligns the CFO's interests with the long-term performance of the company.
• The vesting schedules encourage continued service and commitment from the CFO.

Future Outlook

The vesting of the RSUs and PSUs is contingent upon continued service and, in the case of the PSUs, the satisfaction of performance criteria.

Industry Context

Stock grants are a common form of executive compensation in the technology industry, aligning management's interests with shareholder value.

Comparison to Industry Standards

• Executive compensation packages, including stock options and RSUs, are standard practice among publicly traded technology companies like Cognizant.
• Companies such as Accenture, Infosys, and Tata Consultancy Services also utilize similar equity-based compensation plans to incentivize their executives.
• The vesting schedules and performance metrics associated with these grants are typically designed to align executive performance with long-term shareholder value creation.

Stakeholder Impact

• The stock grants align the CFO's interests with those of shareholders, potentially driving long-term value creation.
• Employees may view the grants as a positive sign of the company's commitment to its leadership.

Next Steps

• The RSUs and PSUs will vest according to their respective schedules, contingent on continued service and, for PSUs, the satisfaction of performance criteria.

Key Dates