Form 4: Harmonic Inc. Executive Timothy C Chu Reports Acquisition of Restricted Stock Units
SEC Form 4 Filing
General Counsel & SVP, HR of Harmonic Inc., Timothy C Chu, reports the acquisition of 45,879 Restricted Stock Units (RSUs) convertible to common stock.
Summary
- On February 22, 2025, Timothy C Chu, General Counsel & SVP, HR of Harmonic Inc. (HLIT), reported acquiring 45,879 Restricted Stock Units (RSUs).
- Each RSU represents a contingent right to receive one share of HLIT common stock.
- The RSUs vest over time, with one-third vesting on February 15, 2026, and the remaining units vesting in approximately 8.33% increments every three months thereafter, fully vesting by February 15, 2028.
- Following the reported transaction, Mr. Chu directly owns 45,879 shares of Harmonic Inc. common stock.
Sentiment
Score: 7
Explanation: The sentiment is neutral to positive. The granting of RSUs is a standard practice and indicates alignment between the executive and the company's long-term goals.
Positives
- The acquisition of RSUs by a key executive signals confidence in the company's future performance.
Future Outlook
The vesting schedule suggests a long-term commitment by the executive to the company's success.
Industry Context
Equity compensation is a common practice in the tech industry to align executive interests with shareholder value.
Comparison to Industry Standards
- Granting restricted stock units (RSUs) to executives is a common practice among publicly traded companies, particularly in the technology sector, to incentivize performance and align management's interests with those of shareholders.
- Companies like Netflix, Google, and Amazon also utilize RSUs as part of their compensation packages for executives.
- The vesting schedules, typically ranging from three to five years, are designed to retain key personnel and encourage long-term value creation.
Stakeholder Impact
- The granting of RSUs to executives can positively impact shareholders by aligning management's interests with long-term company performance.
Key Dates
| Date | Description |
|---|---|
| 02/22/2025 | Date of transaction: Acquisition of Restricted Stock Units. |
| 02/15/2026 | First vesting date: One-third (33.33%) of the Restricted Stock Units are scheduled to vest. |
| 02/15/2028 | Final vesting date: Remaining Restricted Stock Units will be 100% vested. |
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