Form 4: Director Receives RSU Grant from Data I/O Corp

Data I/O Corp director Edward J. Smith received a Restricted Stock Unit (RSU) grant valued at $3.555 per share, totaling 16,260 shares.

Summary

• Edward J. Smith, a Director at Data I/O Corp, was granted 16,260 Restricted Stock Units (RSUs).
• The grant has a Fair Market Value (FMV) price of $3.555 per share, determined by the average of the high and low prices for the day of the transaction.
• These RSUs are scheduled to vest over a period of one year or upon the next Annual Meeting of Shareholders, whichever comes first.
• Following this transaction, Mr. Smith beneficially owns 79,375 shares of common stock.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral filing, as it represents a routine equity grant to a director rather than a significant financial event or strategic shift.

Positives

• Director compensation through equity awards like RSUs can align management interests with shareholder value.
• The RSU grant is part of an annual refresh for directors, indicating ongoing engagement and commitment.
• The vesting schedule over one year or the next annual meeting provides a reasonable timeframe for performance and retention.

Negatives

• The filing does not provide details on the total value of the RSU grant at the time of issuance, only the FMV per share.
• No specific performance targets are mentioned for the vesting of these RSUs.

Risks

• The value of the RSU grant is subject to market fluctuations in Data I/O Corp's stock price.
• If the company's stock price declines significantly, the value of the unvested RSUs will also decrease.

Future Outlook

The RSU grant vests over the earlier of one year or the next Annual Meeting of Shareholders, indicating a short-to-medium term outlook for the director's continued service and potential equity realization.

Management Comments

• "Annual Director's RSU Refresh Grant July 2026"
• "FMV price is the average of high low for the day."
• "RSU grant, vests over the earlier of 1 year or the next Annual Meeting of Shareholders."

Industry Context

StockSavvy.ai notes that equity grants to directors are a standard practice in the technology sector, including semiconductor equipment manufacturers like Data I/O Corp, to incentivize long-term performance and align executive interests with shareholders.

Comparison to Industry Standards

• Many technology companies, including those in semiconductor manufacturing, utilize RSU grants as a primary component of director compensation.
• Vesting periods of one to three years are common, with Data I/O Corp's schedule falling within this typical range.
• The FMV pricing based on daily high-low averages is a standard method for valuing equity awards at the time of grant.

Stakeholder Impact

• Shareholders: The RSU grant represents an issuance of equity, which could dilute ownership slightly, but is a standard compensation practice intended to align director interests with long-term shareholder value.
• Employees: This filing does not directly impact employees, but it reflects standard compensation practices within the company.
• Management: The grant reinforces the director's role and incentivizes continued service and performance.

Next Steps

• Vesting of the RSU grant for Edward J. Smith, occurring over the earlier of one year or the next Annual Meeting of Shareholders.
• Continued monitoring of Data I/O Corp's stock performance and any subsequent insider transactions.

Key Dates

Keywords

Data I/O Corp, DAIO, Form 4, SEC Filing, Insider Trading, Restricted Stock Units, RSU Grant, Director Compensation, Beneficial Ownership, Stock Vesting