Form 4: Cognizant Executive Kathryn Diaz Reports Stock Unit Grants and Vesting
SEC Form 4 Filing
Kathryn Diaz, Chief People Officer at Cognizant, reports the grant and vesting of restricted stock units and performance stock units.
Summary
- Kathryn Diaz, Chief People Officer of Cognizant Technology Solutions Corp, filed a Form 4 detailing changes in beneficial ownership.
- On March 3, 2025, Diaz was granted 8,382 Restricted Stock Units (RSUs) under the company's 2023 Incentive Award Plan.
- These RSUs will vest in twelve successive quarterly installments starting June 15, 2025, and will be fully vested by March 15, 2028.
- Additionally, 598 RSUs were granted on the same date, vesting in a more complex quarterly installment schedule, also concluding on March 15, 2028.
- 983 Performance Stock Units (PSUs) also vested on March 3, 2025, representing a portion of a previous grant from March 1, 2022, based on the achievement of approximately 28% of the performance criteria.
- These PSUs will settle in Class A Common Stock on March 15, 2025, contingent on Diaz's continued employment.
Sentiment
Score: 7
Explanation: The document reflects standard executive compensation practices, indicating stability and alignment of interests. The vesting of PSUs suggests some performance achievement.
Positives
- The vesting of PSUs indicates some level of performance achievement within the company.
- The grants of RSUs align the executive's interests with the long-term performance of the company through a vesting schedule.
Future Outlook
The vesting schedules of the RSUs and PSUs suggest a continued focus on long-term performance and retention of key personnel.
Industry Context
Stock-based compensation is a common practice in the technology industry to incentivize executives and align their interests with shareholders.
Comparison to Industry Standards
- Companies like Accenture, Infosys, and Tata Consultancy Services also utilize stock-based compensation for their executives.
- The vesting schedules and performance criteria are generally aligned with industry practices to ensure retention and drive performance.
Stakeholder Impact
- Shareholders may view the stock grants as a positive incentive for executive performance.
- Employees may see this as a standard compensation practice within the company.
Key Dates
| Date | Description |
|---|---|
| 03/01/2022 | Original grant date of the Performance Stock Units (PSUs). |
| 03/03/2025 | Date of RSU and PSU grants and vesting determination. |
| 03/05/2025 | Form 4 filing date. |
| 03/15/2025 | Settlement date for vested PSUs. |
| 06/15/2025 | First vesting date for a portion of the granted RSUs. |
| 03/15/2028 | Final vesting date for the granted RSUs. |
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