Form 4: Illumina Director Scott B. Ullem Reports Changes in Beneficial Ownership

Director Scott B. Ullem reports acquisition of Illumina stock in lieu of cash retainer fees and adjustment of unvested RSUs following the Grail spin-out.

Summary

• On June 28, 2024, Scott B. Ullem, a director of Illumina, Inc., acquired 205 shares of common stock.
• These shares were received in lieu of cash retainer fees for the second quarter of 2024.
• The price per share was $109.6538.
• Following the transaction, Ullem beneficially owns 4,550 shares of Illumina common stock.
• Additionally, Ullem's unvested RSUs were increased by 53 units due to an adjustment related to the spin-out of Grail, Inc. on June 24, 2024.

Sentiment

Score: 6

Explanation: The sentiment is neutral. The filing primarily reflects routine compensation and adjustments related to the Grail spin-out. There are no overtly positive or negative implications.

Positives

• The acquisition of shares by a director can be seen as a positive signal, indicating confidence in the company's future.

Industry Context

This filing reflects standard executive compensation practices within publicly traded companies, where stock awards and retainers are common. The Grail spin-out adjustment is a specific event impacting Illumina's equity structure.

Comparison to Industry Standards

• Stock compensation for board members is a common practice among publicly traded companies, including those in the biotechnology sector like Illumina.
• Companies such as Thermo Fisher Scientific and Danaher also utilize stock awards as part of their director compensation packages.
• The adjustment of RSUs following a spin-out is a standard procedure to maintain the equity value for employees and directors.

Stakeholder Impact

• The stock acquisition by a director could have a slightly positive impact on shareholder confidence.
• The RSU adjustment ensures that employees and directors retain the intended equity value post-spin-out.

Key Dates