Form 4: Flextronics Director Hurlston Receives Share Units in Lieu of Cash Compensation

Michael E. Hurlston, a director at FLEX Ltd., acquired 934 ordinary shares on April 15, 2024, as part of the company's Share Election Program.

Summary

• On April 15, 2024, Michael E. Hurlston, a director of FLEX Ltd., received 934 restricted share units (RSUs) as part of the Issuer's Share Election Program.
• This program allows directors to elect to receive equity instead of cash compensation.
• The award was granted for the quarterly period from January 1, 2024, to March 31, 2024, and vested immediately upon grant.
• Following the transaction, Hurlston beneficially owns 63,149 ordinary shares, which includes 9,601 unvested RSUs that will vest prior to the company's 2024 annual general meeting.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, indicating a stable and expected practice. The use of equity compensation is generally viewed positively as it aligns the interests of directors with those of shareholders.

Positives

• The Share Election Program aligns director compensation with company performance.
• Immediate vesting of the RSUs provides an incentive for the director.

Industry Context

The use of equity compensation for directors is a common practice in publicly traded companies to align their interests with those of shareholders.

Comparison to Industry Standards

• Many technology companies, such as Apple, Microsoft, and Intel, use equity-based compensation for their directors.
• The amount of equity granted to directors varies depending on the size and performance of the company.
• The vesting schedules for RSUs also vary, with some companies using immediate vesting and others using multi-year vesting schedules.

Stakeholder Impact

• Shareholders may view the equity compensation positively as it aligns director interests with company performance.
• The transaction has a minimal impact on other stakeholders.

Next Steps

• The unvested RSUs will vest prior to the company's 2024 annual general meeting.

Key Dates