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 shares related to the vesting of performance-based restricted stock units (PRUs) and shares withheld for tax obligations.

Summary

• On May 2, 2025, Gen Digital Inc. CEO Vincent Pilette reported transactions involving the company's common stock.
• These transactions include the acquisition of 478,568 shares upon the vesting of Performance-based Restricted Stock Units (PRUs) at a price of $25.93.
• Simultaneously, 244,119 shares were disposed of to cover income tax withholding obligations related to the PRU settlement, also at $25.93.
• Following these transactions, Pilette directly owns 1,844,633 shares of common stock.
• Pilette 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 bookings growth and non-GAAP operating margin performance (BGOM) over a three-year performance period.
• The performance criteria were met at 187.5% of the target, leading to the vesting of 478,568 PRU shares from an initial award of 510,472 shares granted on July 8, 2022.

Sentiment

Score: 7

Explanation: The document reflects positive performance as the PRUs vested at 187.5% of the target, indicating strong achievement of performance goals. However, it's a routine filing, so the sentiment is moderately positive.

Positives

• The vesting of PRUs indicates that Gen Digital achieved significant performance targets related to shareholder return and operational metrics.
• The performance criteria were met at 187.5% of the target, suggesting strong performance during the three-year performance period.

Industry Context

This filing is a routine disclosure related to executive compensation and stock ownership, common in publicly traded companies. The vesting of PRUs is tied to the company's performance, aligning executive incentives with shareholder value.

Comparison to Industry Standards

• Performance-based equity compensation is a common practice among publicly traded companies to align executive incentives with shareholder value.
• The specific metrics used (TSR and BGOM) are relevant to Gen Digital's business and are often used by comparable companies in the technology sector.
• Companies like Palo Alto Networks, Fortinet, and CrowdStrike also utilize performance-based equity awards tied to metrics such as revenue growth, operating margin, and customer acquisition.

Stakeholder Impact

• Shareholders may view the vesting of PRUs positively, as it indicates that the company has met performance targets.
• Employees may be motivated by the achievement of performance goals, which led to the vesting of PRUs for executives.

Key Dates

Keywords

Gen Digital, Vincent Pilette, Performance-based Restricted Stock Units, PRUs, Stock Transactions, Beneficial Ownership, SEC Form 4, TSR, BGOM