Form 4: Cognizant EVP & General Counsel, John Kim, Reports Stock Unit Grants and Performance Vesting

John Kim, EVP & General Counsel of Cognizant, reports the grant of restricted stock units and the vesting of performance stock units.

Summary

• On February 28, 2024, John Kim, EVP & General Counsel of Cognizant Technology Solutions Corp, was granted restricted stock units (RSUs) and performance stock units (PSUs).
• 15,290 RSUs were granted under the 2023 Incentive Award Plan, vesting in twelve successive quarterly installments starting June 1, 2024, and fully vesting by March 1, 2027.
• 11,467 RSUs were also granted on February 28, 2024, under the same plan, with a more complex vesting schedule over eleven quarterly installments, also concluding on March 1, 2027.
• 1,880 PSUs, originally granted on February 23, 2021, under the 2017 Incentive Award Plan, will vest on March 15, 2024, as the Compensation and Human Capital Committee determined that approximately 91.4% of the performance criteria were met.
• 9,954 PSUs, also originally granted on March 29, 2021, under the 2017 Incentive Award Plan, will vest on March 15, 2024, based on the same performance criteria satisfaction of approximately 91.4%.

Sentiment

Score: 7

Explanation: The document indicates standard executive compensation practices and the achievement of performance goals, suggesting a neutral to slightly positive outlook.

Positives

• The vesting of PSUs indicates that performance criteria were largely met, suggesting positive performance within the company.
• The grant of RSUs incentivizes the executive to remain with the company and contribute to its future success.

Future Outlook

The executive is incentivized to remain with the company through the vesting periods of the RSUs and PSUs.

Industry Context

Stock grants and vesting are common practices in the technology industry to align executive compensation with company performance and shareholder value.

Comparison to Industry Standards

• Companies like Accenture, Infosys, and TCS also utilize stock-based compensation for their executives.
• The vesting schedules and performance criteria are generally aligned with industry norms to retain talent and drive performance.

Stakeholder Impact

• Shareholders may view the vesting of PSUs as a positive sign of company performance.
• Employees may see the executive compensation structure as an indicator of the company's commitment to rewarding performance.

Key Dates