Form 4: Cohu Inc. Executive Bohrson Acquires Restricted and Performance Stock Units

Christopher Bohrson, a Senior VP & Chief Customer Officer at Cohu Inc., reports the acquisition of restricted and performance stock units.

Summary

• On March 12, 2024, Christopher Bohrson, Senior VP & Chief Customer Officer of Cohu Inc., acquired 12,360 Restricted Stock Units (RSUs) and 18,541 Performance Stock Units.
• The RSUs vest in three equal annual installments beginning March 12, 2025, assuming continued employment.
• The Performance Stock Units will convert into Cohu, Inc. Common Stock upon vesting, contingent on achieving specified performance goals related to total shareholder return.
• Vesting for the Performance Stock Units is scheduled for March 12, 2027, if performance goals are met and employment continues.
• The actual number of shares that may vest from the Performance Stock Units ranges from 0% to 200% of the target amount, depending on the achievement of performance goals.
• Following the reported transactions, Bohrson beneficially owns 123,407 Restricted Stock Units and 141,948 Performance Stock Units.

Sentiment

Score: 6

Explanation: The document is a neutral report of stock unit acquisitions. The sentiment is moderately positive due to the alignment of executive interests with shareholder value through performance-based vesting.

Positives

• The acquisition of stock units aligns the executive's interests with those of the shareholders.
• The vesting of Performance Stock Units is tied to the achievement of specific performance goals, potentially driving shareholder value.

Risks

• The vesting of Performance Stock Units is contingent on achieving specific performance goals, which may not be met.
• The actual number of shares vesting from the Performance Stock Units can be significantly lower than the target amount if performance goals are not fully achieved.

Future Outlook

The vesting of the stock units is contingent upon continued employment and, in the case of Performance Stock Units, the achievement of specified performance goals related to total shareholder return.

Industry Context

This filing is a routine disclosure of executive compensation in the form of stock units, a common practice in publicly traded companies to incentivize and retain key personnel. The performance-based vesting aligns executive compensation with shareholder value creation.

Comparison to Industry Standards

• Granting restricted stock units and performance stock units is a common practice among publicly traded technology companies like Cohu to incentivize executives.
• Companies such as Teradyne and Advantest, which are competitors of Cohu in the semiconductor testing equipment industry, also utilize similar equity-based compensation plans.
• The vesting schedules and performance metrics tied to these grants are typically aligned with industry benchmarks for executive compensation.

Stakeholder Impact

• Shareholders: The acquisition of stock units aligns executive interests with shareholder value.
• Employees: The vesting of stock units is contingent on continued employment, potentially improving employee retention.

Key Dates