Form 4: FormFactor CFO Granted 13,188 Restricted Stock Units

FormFactor Inc.'s CFO, Aric Brendan McKinnis, was granted 13,188 restricted stock units, vesting quarterly over three years.

Summary

• Aric Brendan McKinnis, Chief Financial Officer (CFO) and Senior Vice President of Global Finance at FormFactor Inc. (FORM), was granted 13,188 Restricted Stock Units (RSUs).
• The transaction date for this grant was November 6, 2025.
• These RSUs will vest in twelve quarterly installments, commencing on February 6, 2026, and concluding on November 6, 2028.
• Upon vesting, the RSUs will be settled into shares of FormFactor Inc. common stock.
• The grant price for these Restricted Stock Units was $0.
• If McKinnis's employment is terminated before an applicable vesting date, all unvested RSUs will be forfeited without consideration, subject to exceptions outlined in change of control severance agreements or other equity vesting agreements filed with the SEC.

Sentiment

Score: 6

Explanation: The grant of Restricted Stock Units to a key executive is generally a neutral to slightly positive event, indicating executive retention and alignment of interests with shareholders, without direct impact on immediate financial performance.

Positives

• The grant of Restricted Stock Units aligns the executive's long-term interests with those of shareholders, as the value of the compensation is tied to the company's stock performance.
• This RSU grant serves as a retention incentive for a key executive, encouraging continued service to the company through the multi-year vesting schedule.

Negatives

• The RSUs do not provide immediate cash value to the executive and are subject to a multi-year vesting schedule.
• Potential future dilution of existing shareholder equity will occur as the RSUs vest and convert into common stock, although the impact from this specific grant is likely minor.

Risks

• The reporting person risks forfeiture of all unvested Restricted Stock Units if their employment is terminated for any reason before the vesting dates, unless specific change of control or other equity agreements provide exceptions.
• The ultimate value of the compensation to the reporting person is subject to the future market price fluctuations of FormFactor Inc.'s common stock.

Future Outlook

The RSU grant indicates a commitment to retaining key executive talent and aligning management incentives with long-term shareholder value creation through a multi-year vesting schedule.

Industry Context

The grant of Restricted Stock Units is a common practice in executive compensation across various industries, particularly in technology and semiconductor sectors where talent retention and long-term performance alignment are critical. This aligns with standard industry practices for incentivizing and retaining senior leadership.

Comparison to Industry Standards

• The use of Restricted Stock Units (RSUs) as a component of executive compensation is a widely adopted practice across the technology and semiconductor industries, including companies comparable to FormFactor Inc. such as KLA Corporation, Teradyne Inc., and Lam Research Corporation.
• Multi-year vesting schedules, typically 3-4 years with quarterly or annual installments, are standard for RSU grants to ensure long-term retention and alignment of executive interests with shareholder value, consistent with practices observed at peer companies.

Stakeholder Impact

• Shareholders: The grant aligns the CFO's interests with long-term shareholder value, but also introduces potential minor dilution upon vesting.
• Employees: This compensation structure for a senior executive may set a precedent or expectation for equity-based incentives within the company.

Next Steps

• The Restricted Stock Units will begin vesting in twelve quarterly installments starting February 6, 2026.
• Shares of common stock will be issued to the reporting person on or following each vesting date.

Key Dates

Keywords

FormFactor, FORM, Restricted Stock Units, RSU, Executive Compensation, Insider Transaction, CFO, McKinnis, Equity Grant, Vesting