Form 4: Cognizant EVP Kathryn Diaz Reports Stock Transactions
SEC Form 4 Filing
Kathryn Diaz, EVP and Chief People Officer at Cognizant, reports the vesting of restricted stock units and associated tax withholding.
Summary
- Kathryn Diaz, EVP and Chief People Officer of Cognizant Technology Solutions Corp, filed a Form 4 on September 10, 2024.
- The report details transactions involving Class A Common Stock related to the vesting of restricted stock units (RSUs).
- On September 6, 2024, 935 shares were acquired from the vesting of RSUs granted on September 6, 2023.
- Also on September 6, 2024, 472 shares were withheld to cover applicable taxes at a price of $75.84 per share.
- Following these transactions, Diaz directly owns 14,227 shares of Class A Common Stock and 3,742 Restricted Stock Units.
- The RSUs were granted under the company's 2023 Incentive Award Plan and vest in installments until March 6, 2026.
Sentiment
Score: 6
Explanation: This is a neutral event. It reflects standard executive compensation practices and does not indicate any significant positive or negative developments for the company.
Positives
- The vesting of RSUs indicates that performance milestones or time-based vesting requirements have been met.
Future Outlook
The remaining RSUs will continue to vest in quarterly installments until March 6, 2026, as per the vesting schedule outlined in the 2023 Incentive Award Plan.
Industry Context
Form 4 filings are a routine part of executive compensation and provide transparency into the trading activities of company insiders. This filing is typical for executives receiving stock-based compensation.
Comparison to Industry Standards
- Executive compensation packages often include restricted stock units (RSUs) that vest over time, aligning executive interests with long-term shareholder value.
- The vesting schedule described is fairly standard, with quarterly installments over several years.
- Tax withholding upon vesting is a common practice to cover income tax obligations.
Stakeholder Impact
- The vesting of RSUs aligns executive compensation with shareholder interests by incentivizing long-term value creation.
Key Dates
| Date | Description |
|---|---|
| September 6, 2023 | Date of original RSU grant (8,415 RSUs). |
| December 6, 2023 | Commencement of RSU vesting in quarterly installments. |
| September 6, 2024 | Vesting of 935 shares and tax withholding of 472 shares. |
| September 10, 2024 | Date of Form 4 filing. |
| March 6, 2026 | Final vesting date for the RSUs. |
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