Form 4: IBM Vice Chairman Cohn's Latest Stock Transactions

IBM Vice Chairman Gary D. Cohn reported the vesting and subsequent tax-related disposition of restricted stock units, increasing his direct beneficial ownership.

Summary

• Gary D. Cohn, Vice Chairman of International Business Machines Corp (IBM), reported multiple transactions involving common stock on February 21, 2026.
• He acquired a total of 7,582 shares of common stock through the vesting of restricted stock units (RSUs) at an exercise price of $0.00.
• Specifically, 2,725 shares vested from a grant on February 21, 2022; 2,611 shares vested from a grant on February 21, 2023; and 2,246 shares vested from a grant on February 21, 2024.
• Concurrently, Mr. Cohn disposed of a total of 4,194 shares of common stock at a price of $256.42 per share, likely to cover tax obligations related to the RSU vesting.
• Following these transactions, Mr. Cohn's direct beneficial ownership of IBM common stock stands at 110,590.186 shares.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a neutral to slightly positive event, reflecting the routine vesting of executive compensation and a standard tax-related disposition, which indicates continued executive alignment with company performance.

Positives

• The vesting of 7,582 restricted stock units represents a realization of executive compensation, aligning the Vice Chairman's interests with long-term company performance.
• The increase in direct beneficial ownership to 110,590.186 shares demonstrates continued significant equity holdings by a key executive.

Negatives

• The disposition of 4,194 shares, while routine for tax withholding, represents a reduction in the total number of shares held post-vesting.

Future Outlook

The filing indicates future vesting dates for restricted stock units on February 21, 2027, and February 21, 2028, for previously granted awards.

Industry Context

StockSavvy.ai notes that executive equity compensation, particularly through restricted stock units with multi-year vesting schedules, is a standard practice across the technology and financial services industries, aligning executive incentives with long-term shareholder value.

Comparison to Industry Standards

• StockSavvy.ai observes that the structure of RSU grants with multi-year vesting schedules is a common compensation mechanism, comparable to practices at companies like Microsoft, Apple, and Google, which use similar equity incentives to retain top talent and encourage performance.
• The disposition of shares to cover tax obligations upon vesting is a standard and expected procedure in executive compensation plans across publicly traded companies.

Stakeholder Impact

• Shareholders: The vesting and subsequent disposition of shares are routine events that slightly increase the outstanding share count but also reinforce executive alignment with shareholder interests through equity ownership.
• Employees: No direct impact on the broader employee base is indicated by this executive-specific transaction.

Next Steps

• Portions of the RSUs granted on February 21, 2023, are scheduled to vest on February 21, 2027.
• Portions of the RSUs granted on February 21, 2024, are scheduled to vest on February 21, 2027, and February 21, 2028.

Key Dates

Recommendation

This Form 4 filing details routine executive compensation vesting and subsequent tax-related stock dispositions. It does not provide new information regarding the company's operational performance, strategic direction, or financial health that would warrant a change in investment recommendation. The transactions are expected and reflect standard executive equity incentive plans.

Keywords

IBM, Gary Cohn, Form 4, Insider Trading, Restricted Stock Units, Equity Compensation, Executive Compensation, Stock Vesting