Form 4: Gen Digital CEO Vincent Pilette Reports Stock Transactions Following Vesting of Performance-Based Restricted Stock Units

Gen Digital CEO Vincent Pilette reports the acquisition and disposal of common stock related to the vesting of performance-based restricted stock units (PRUs).

Summary

• On May 8, 2024, Vincent Pilette, CEO of Gen Digital Inc., reported transactions involving the company's common stock.
• These transactions are related to the vesting of performance-based restricted stock units (PRUs).
• Pilette acquired 466,309 shares of common stock upon the vesting of the PRUs at a price of $20.02.
• Simultaneously, 231,197 shares were withheld by the issuer to cover income tax obligations.
• Following these transactions, Pilette directly owns 1,623,447 shares of common stock.
• He also indirectly owns 103,000 shares through the VPJW Revocable Trust and 517,477 shares through the VPJW Exempt Gift Trust.
• The PRUs vested based on Gen Digital's achievement of target total shareholder return (TSR) and target compound annual growth rate (CAGR) over a three-year performance period.
• The performance criteria were met at 174.76% of the target, resulting in the vesting of 466,309 PRU shares.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The vesting of PRUs suggests the company met its performance targets, which is a positive signal. However, the filing itself is a routine disclosure.

Positives

• The vesting of PRUs indicates that Gen Digital achieved significant performance targets related to shareholder return and growth rate.
• The performance criteria were met at 174.76% of the target, resulting in the vesting of 466,309 PRU shares.

Industry Context

This filing is a routine disclosure of insider transactions, which are common in publicly traded companies. The vesting of PRUs is tied to the company's performance, reflecting an incentive structure designed to align management's interests with those of shareholders.

Comparison to Industry Standards

• Performance-based equity compensation is a common practice among publicly traded companies to incentivize executives.
• The specific metrics used (TSR and CAGR) are standard measures of company performance and shareholder value creation.
• The vesting percentage of 174.76% suggests that Gen Digital's performance exceeded the initial targets set for these metrics.

Stakeholder Impact

• The vesting of PRUs and the associated stock transactions may have a minor positive impact on shareholder sentiment, as it indicates the company achieved its performance goals.
• The withholding of shares for tax obligations has no significant impact on other stakeholders.

Key Dates