Form 4: Cohu Executive Granted Performance and Restricted Stock Units

Cohu's Sr. VP & Chief Product Officer, Klaus Ilgenfritz, was granted performance and restricted stock units, with a portion withheld for tax obligations.

Summary

• Klaus Ilgenfritz, Sr. VP & Chief Product Officer of Cohu Inc. (COHU), reported changes in beneficial ownership.
• On March 10, 2026, Ilgenfritz was granted 13,076 Performance Stock Units (PSUs) and 13,076 Restricted Stock Units (RSUs).
• The PSUs are contingent on achieving specified performance goals (total shareholder return) over a three-year period, with actual shares vesting ranging from 0% to 200% of the target amount.
• The RSUs vest in four equal annual installments, subject to continued service.
• On March 11, 2026, 2,225 Common Stock Units were automatically withheld to cover tax obligations related to RSU vesting.
• Following these transactions, Ilgenfritz beneficially owns 90,461 Performance Stock Units, 103,537 Restricted Stock Units, and 101,312 Common Stock Units.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral event, as it details routine executive compensation grants and tax-related dispositions, which are standard corporate practices and do not indicate a significant shift in company prospects or insider sentiment.

Positives

• The grant of Performance Stock Units (PSUs) and Restricted Stock Units (RSUs) aligns the executive's long-term interests with shareholder value creation.
• PSUs are tied to total shareholder return, directly incentivizing performance that benefits investors.

Risks

• The actual number of shares received from Performance Stock Units (PSUs) can range from 0% to 200% of the target amount, depending on the achievement of specified performance goals, introducing variability in executive compensation.
• Vesting of both PSUs and RSUs is subject to continued service, meaning the executive must remain employed to receive the awards.

Future Outlook

Performance Stock Units are scheduled to be measured and earned in full on the third anniversary of the grant date (March 10, 2029), contingent on achieving specified total shareholder return goals. Restricted Stock Units will vest in four equal annual installments, beginning on the anniversary of the grant date (March 10, 2027), subject to continued service.

Industry Context

StockSavvy.ai notes that the grant of performance-based and restricted stock units to a senior executive is a common practice in the technology and semiconductor industry, aiming to align management incentives with long-term company performance and shareholder interests.

Stakeholder Impact

• Shareholders: The equity grants, particularly the performance-based units, aim to align executive incentives with shareholder returns, potentially leading to improved company performance.
• Executive (Klaus Ilgenfritz): The grants represent a significant portion of long-term compensation, subject to performance and continued employment, directly impacting personal wealth and career incentives.

Next Steps

• Vesting of Performance Stock Units on the third anniversary of the grant date (March 10, 2029), contingent on performance goals.
• Annual vesting of Restricted Stock Units, beginning on the anniversary of the grant date (March 10, 2027).

Key Dates

Keywords

COHU, Form 4, insider transaction, executive compensation, stock units, RSU, PSU, equity grant