Form 4: Fabrinet Director Darlene S. Knight Acquires Restricted Share Units

Director Darlene S. Knight acquired 895 restricted share units of Fabrinet, which will vest on January 1, 2026, contingent on continued service.

Summary

• Darlene S. Knight, a director at Fabrinet, acquired 895 restricted share units.
• These units were awarded as part of her compensation for serving on the board of directors.
• Each restricted share unit represents the right to receive one ordinary share of Fabrinet stock.
• The units will vest on January 1, 2026, provided Ms. Knight continues to serve as a director until that date.
• The transaction occurred on December 12, 2024.

Sentiment

Score: 7

Explanation: The document reflects a standard compensation practice, indicating a positive alignment of interests between the director and the company. There are no negative implications.

Positives

• The acquisition of restricted share units aligns the director's interests with the long-term performance of the company.
• The vesting schedule encourages continued service and commitment from the director.

Risks

• The vesting of the restricted share units is contingent on the director's continued service, which introduces a risk of forfeiture if she leaves the board before January 1, 2026.

Future Outlook

The restricted share units will vest on January 1, 2026, contingent on the director's continued service.

Industry Context

This is a standard practice for compensating board members in publicly traded companies, aligning their interests with shareholders.

Comparison to Industry Standards

• Granting restricted stock units to directors is a common practice among publicly traded companies, such as those in the technology and manufacturing sectors, to incentivize long-term commitment and align interests with shareholders.
• Companies like Jabil and Flex also use similar equity-based compensation for their board members.
• The vesting period of approximately 13 months is within the typical range for such grants.

Stakeholder Impact

• The acquisition of restricted share units by a director aligns her interests with those of shareholders, potentially leading to better long-term performance.

Key Dates

Keywords

restricted share units, director compensation, share acquisition, Fabrinet, board of directors, vesting