Form 4: Dynatrace EVP, CFO and Treasurer James M. Benson Reports Changes in Beneficial Ownership

James M. Benson, EVP, CFO and Treasurer of Dynatrace, Inc., reports acquisition and disposal of common stock related to performance-based stock units (PSUs).

Summary

• On May 15, 2024, James M. Benson, EVP, CFO and Treasurer of Dynatrace, Inc., reported changes in beneficial ownership of Dynatrace common stock.
• Benson acquired 69,463 shares of common stock at $0, representing shares earned under Performance Stock Units (PSUs) granted on June 5, 2023.
• These PSUs vested based on the Compensation Committee's certification of financial performance results for the fiscal year ended March 31, 2024.
• 33% of these PSUs vested on June 5, 2024, and the remaining 67% will vest in equal quarterly installments over the subsequent two years, contingent upon continued employment.
• Following the reported transaction, Benson beneficially owns 369,051 shares of Dynatrace common stock.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The vesting of PSUs suggests the company met its performance targets, which is a positive sign. The continued vesting schedule also indicates confidence in future performance.

Positives

• The vesting of PSUs indicates that Dynatrace achieved certain financial performance targets for the fiscal year ended March 31, 2024.
• The continued vesting schedule incentivizes the executive to remain with the company for the next two years.

Future Outlook

The remaining 67% of the PSUs will vest in equal quarterly installments over the subsequent two years, subject to continued employment.

Industry Context

Executive compensation through equity grants is a common practice in the technology industry to align management's interests with those of shareholders and incentivize long-term performance.

Comparison to Industry Standards

• Many technology companies use PSUs as part of their executive compensation packages, with vesting tied to specific performance metrics such as revenue growth, profitability, or product development milestones.
• Companies like Atlassian, Datadog, and Cloudflare also utilize similar equity-based compensation plans to incentivize their executives.
• The vesting schedule of Dynatrace's PSUs, with a mix of immediate and future vesting, is fairly standard in the industry.

Stakeholder Impact

• The vesting of PSUs aligns executive compensation with shareholder value, potentially benefiting shareholders.
• The continued vesting schedule incentivizes the executive to remain with the company, which could benefit employees and other stakeholders.

Key Dates