Form 4: IBM Senior Vice President Reports Stock Transactions Following RSU Vesting

IBM Senior Vice President Robert David Thomas reported the acquisition of 22,068 shares of common stock and the disposal of 10,346 shares to cover tax obligations following the vesting of restricted stock units.

Summary

• Robert David Thomas, a Senior Vice President at IBM, reported transactions involving IBM common stock on February 11, 2024.
• These transactions occurred due to the vesting of 21,360 restricted stock units (RSUs) granted on February 11, 2020.
• Mr. Thomas acquired 22,068 shares of common stock upon the vesting of the RSUs.
• He also disposed of 10,346 shares of common stock at a price of $185.515 per share to cover tax obligations related to the vesting.
• Following these transactions, Mr. Thomas directly owns 56,634.301 shares of IBM common stock.
• The original grant of 35,601 RSUs was made on February 11, 2020, with 21,360 vesting on February 11, 2024, and the remaining 14,241 scheduled to vest on February 11, 2025.
• The number of RSUs was adjusted to reflect additional units in connection with the spin-off of Kyndryl Holdings, Inc. on November 3, 2021.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to executive compensation. It is neither particularly positive nor negative, but rather a standard disclosure.

Future Outlook

The remaining 14,241 RSUs are scheduled to vest on February 11, 2025.

Industry Context

This is a routine disclosure of stock transactions by a company executive, which is common practice for publicly traded companies. It reflects standard compensation practices using restricted stock units.

Comparison to Industry Standards

• The use of restricted stock units (RSUs) as part of executive compensation is a common practice among large publicly traded companies like IBM.
• Companies such as Microsoft, Apple, and Oracle also frequently use RSUs as part of their compensation packages.
• The vesting schedules and tax-related sales of shares are typical for RSU grants.
• The adjustment of RSUs due to corporate spin-offs is also a standard procedure to maintain the intended value of the compensation.

Stakeholder Impact

• The transactions have a minor impact on shareholders as they reflect standard executive compensation practices.
• The sale of shares to cover tax obligations may have a slight downward pressure on the stock price, but this is likely to be minimal.

Key Dates

Keywords

IBM, insider trading, Form 4, restricted stock units, RSU, stock transaction, Robert David Thomas, executive compensation, share ownership