Form 4: COHU Officer Granted Equity, Tax Withholding

COHU's Senior VP and Chief Customer Officer, Christopher Bohrson, received grants of Performance Stock Units and Restricted Stock Units, alongside a tax-related disposition of common stock.

Summary

• Christopher Bohrson, Senior VP & Chief Customer Officer of COHU INC, acquired 17,979 Performance Stock Units (PSUs) on March 10, 2026.
• Bohrson also acquired 17,979 Restricted Stock Units (RSUs) on March 10, 2026.
• A disposition of 4,088 shares of Common Stock occurred on March 11, 2026, to cover tax obligations related to RSU vesting.
• Following these transactions, Bohrson beneficially owns 185,216 Performance Stock Units, 203,195 Restricted Stock Units, and 199,107 shares of Common Stock (which includes 135,861 RSUs not yet converted).

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a positive signal of continued executive commitment and alignment with shareholder interests through long-term equity incentives, which is a standard and healthy practice for corporate governance.

Positives

• The grant of Performance Stock Units (PSUs) aligns executive compensation with shareholder returns, as vesting is contingent on achieving specified performance goals (total shareholder return) over a three-year period.
• The grant of Restricted Stock Units (RSUs) incentivizes continued service and long-term commitment to the company, with vesting occurring in four equal annual installments.

Risks

• Performance Stock Units (PSUs) carry a risk for the executive that the actual number of shares vesting could range from 0% to 200% of the target amount, depending on the achievement of specified performance goals.

Future Outlook

Performance Stock Units are scheduled to be earned and measured in full on the third anniversary of the grant date, contingent on achieving specified performance goals. Restricted Stock Units will vest in four equal annual installments beginning with the anniversary of the grant date, subject to continued service.

Industry Context

StockSavvy.ai notes that equity grants, particularly those tied to performance and time-based vesting, are a standard practice in the semiconductor equipment and related industries. This approach is widely adopted to align the interests of senior executives with the long-term performance and shareholder value creation of the company.

Comparison to Industry Standards

• Equity grants with a mix of performance-based (PSUs) and time-based (RSUs) vesting are consistent with executive compensation structures observed at comparable companies in the technology and semiconductor sectors, such as Teradyne Inc. or Advantest Corporation.
• The use of total shareholder return (TSR) as a performance metric for PSUs is a common and well-regarded practice for linking executive incentives directly to market performance and shareholder returns, mirroring strategies seen in leading global tech firms.

Stakeholder Impact

• Shareholders: The equity grants, particularly the performance-based units, align the executive's financial interests with shareholder value creation, potentially leading to more focused strategic decisions.
• Employees: The compensation structure for senior leadership can influence overall company culture and compensation philosophy, potentially impacting employee morale and retention.

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 in four equal installments, starting on the anniversary of the grant date (March 10, 2027).

Key Dates

Keywords

COHU, Form 4, Insider Transaction, Equity Grant, Restricted Stock Units, Performance Stock Units, Executive Compensation, Corporate Governance