Form 4: Gen Digital CFO Natalie Derse Reports Stock Transactions Following Vesting of Performance-Based Restricted Stock Units

Natalie Derse, CFO of Gen Digital Inc., reports the acquisition and disposal of common stock related to the vesting of performance-based restricted stock units (PRUs).

Summary

• On May 8, 2024, Natalie Derse, CFO of Gen Digital Inc., reported transactions involving Gen Digital's common stock.
• These transactions are related to the vesting of performance-based restricted stock units (PRUs).
• A total of 143,478 shares were acquired upon vesting of the PRUs at a price of $20.02 per share.
• 71,137 shares were withheld by the issuer to cover income tax obligations related to the PRU settlement.
• Following these transactions, Derse directly owns 408,371 shares of Gen Digital common stock and 0 derivative securities.
• 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 143,478 PRU shares.

Sentiment

Score: 7

Explanation: The document reflects a positive outcome as performance targets were exceeded, leading to the vesting of PRUs. The transactions are routine and expected, contributing to a neutral to slightly positive sentiment.

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 143,478 PRU shares.

Industry Context

Form 4 filings are standard practice for reporting insider transactions and provide transparency into the trading activities of company executives.

Comparison to Industry Standards

• Executive compensation packages often include performance-based equity awards like PRUs to align management's interests with those of shareholders.
• The vesting of PRUs based on TSR and CAGR is a common practice among publicly traded companies to incentivize long-term value creation.
• The level of target achievement (174.76%) can be compared to similar companies in the tech industry to assess Gen Digital's performance relative to its peers.

Stakeholder Impact

• The vesting of PRUs and subsequent stock transactions may have a minor impact on shareholders due to the increased number of shares in the market.
• The achievement of performance targets benefits shareholders by aligning management's interests with long-term value creation.

Key Dates