Form 4: IBM CFO James Kavanaugh Reports Stock Transactions Following RSU Vesting
SEC Form 4
IBM's Senior VP and CFO, James Kavanaugh, reported the vesting of restricted stock units and subsequent transactions involving IBM common stock on June 8, 2024.
Summary
- On June 8, 2024, James Kavanaugh, IBM's Senior VP and CFO, had restricted stock units (RSUs) vest, resulting in the acquisition of 5,688 and 5,163 shares of IBM common stock.
- Following the vesting, a portion of the shares were sold to cover tax obligations, with 2,851 shares sold at $169.71 and 2,588 shares sold at $169.71.
- After these transactions, Mr. Kavanaugh directly owns 124,190.7305 shares of IBM common stock.
Sentiment
Score: 7
Explanation: The document reflects routine executive compensation transactions, which are neither positive nor negative for the company's overall performance. The sentiment is neutral to slightly positive due to the vesting of RSUs.
Positives
- The vesting of RSUs indicates that performance-based compensation is being realized by the CFO.
- The transactions are a normal part of executive compensation and do not indicate any negative sentiment.
Industry Context
This is a routine filing related to executive compensation and is common practice for publicly traded companies. It does not indicate any specific trend or event within the broader tech industry.
Comparison to Industry Standards
- The vesting and subsequent sale of shares to cover taxes is a standard practice for executive compensation across the technology industry.
- Many companies, such as Microsoft, Apple, and Oracle, use similar RSU structures for their executives.
- The specific number of shares and vesting schedules vary by company and executive level, but the overall process is consistent.
Stakeholder Impact
- The transactions have a minimal impact on shareholders as they are part of standard executive compensation practices.
- The sale of shares to cover taxes does not significantly affect the overall market.
Key Dates
| Date | Description |
|---|---|
| 06/08/2020 | Date of initial grant of 22,020 RSUs, vesting in four equal tranches. |
| 06/08/2021 | First tranche of 5,505 RSUs from the 2020 grant vested, and a grant of 19,988 RSUs was made, vesting in four tranches. |
| 11/03/2021 | Kyndryl Holdings, Inc. spin-off, resulting in adjustments to unvested IBM RSUs. |
| 06/08/2022 | Second tranche of 5,505 RSUs from the 2020 grant vested, and the first tranche of 4,997 RSUs from the 2021 grant vested. |
| 06/08/2023 | Third tranche of 5,505 RSUs from the 2020 grant vested, and the second tranche of 4,997 RSUs from the 2021 grant vested. |
| 06/08/2024 | Final tranche of 5,505 RSUs from the 2020 grant vested, and the third tranche of 4,997 RSUs from the 2021 grant vested, resulting in the reported transactions. |
| 06/11/2024 | Date of the SEC Form 4 filing. |
Keywords
IBM, James Kavanaugh, CFO, Restricted Stock Units, RSU, Stock Transactions, Executive Compensation, SEC Form 4
Disclaimer:The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.