Form 4: Gen Digital Director Smith Receives Equity Awards
SEC Form 4 Filing
Director Sherrese M. Smith receives equity awards, including RSUs, as part of annual compensation and retainer fees.
Summary
- Sherrese M. Smith, a director of Gen Digital Inc., received two grants of Restricted Stock Units (RSUs) on September 10, 2024.
- The first grant consists of 10,038 shares, representing the annual non-employee director equity award, which will vest fully on the earlier of September 10, 2025, or the next annual meeting, contingent upon continued service.
- The second grant consists of 1,930 shares, representing the annual non-employee director retainer fee issued in stock, which will vest 25% on December 1, 2024, March 1, 2025, June 1, 2025, and September 1, 2025, contingent upon continued service.
- Following these transactions, Smith directly owns 63,364 shares of Gen Digital Inc. common stock.
Sentiment
Score: 7
Explanation: The document reflects standard director compensation practices, which is generally viewed neutrally to positively as it aligns director interests with shareholders. The sentiment is moderately positive due to the incentive structure.
Positives
- The equity awards align the director's interests with those of the shareholders.
- The vesting schedules incentivize continued service and commitment to the company.
Industry Context
Equity compensation is a common practice for directors of publicly traded companies to align their interests with shareholders and incentivize performance.
Comparison to Industry Standards
- Director compensation packages, including equity awards, vary significantly across industries and company sizes.
- Comparing Gen Digital's director compensation to that of its peers, such as NortonLifeLock (prior to the merger) or similar cybersecurity and digital privacy companies, would provide a benchmark for assessing its competitiveness.
- Companies like Palo Alto Networks and CrowdStrike also utilize equity-based compensation for their directors.
Stakeholder Impact
- Shareholders: The equity awards align director interests with shareholder value.
- Employees: The awards do not directly impact employees.
- Customers: The awards do not directly impact customers.
Key Dates
| Date | Description |
|---|---|
| 09/10/2024 | Date of transaction: Grant of RSUs for annual equity award and retainer fee. |
| 12/01/2024 | First vesting date (25%) for retainer fee RSUs. |
| 03/01/2025 | Second vesting date (25%) for retainer fee RSUs. |
| 06/01/2025 | Third vesting date (25%) for retainer fee RSUs. |
| 09/01/2025 | Fourth vesting date (25%) for retainer fee RSUs. |
| 09/10/2025 | Vesting date for annual equity award RSUs (or next annual meeting, if earlier). |
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