Form 4: IBM Vice Chairman Gary Cohn Executes Stock Transactions Following RSU Vesting

IBM Vice Chairman Gary Cohn acquired 23,151 shares of common stock through the vesting of restricted stock units and disposed of 12,804 shares to cover tax obligations.

Summary

• Gary Cohn, Vice Chairman of IBM, engaged in transactions involving the company's common stock on December 28, 2023.
• He acquired 23,151 shares of common stock through the vesting of restricted stock units (RSUs) at a price of $0.00 per share.
• Concurrently, he disposed of 12,804 shares of common stock at a price of $163.69 per share to satisfy tax obligations related to the vesting.
• Following these transactions, Mr. Cohn directly owns 52,957.604 shares of IBM common stock.
• The RSUs were part of a grant made on December 28, 2020, which vested in installments over several years.

Sentiment

Score: 7

Explanation: The document reflects routine executive stock transactions, which are neither positive nor negative for the company's overall outlook. The sentiment is neutral to slightly positive due to the alignment of executive interests with company performance through equity compensation.

Positives

• The vesting of restricted stock units indicates a form of compensation and alignment of interests between the executive and the company's performance.
• The transactions are a normal part of executive compensation and do not indicate any negative sentiment from the executive.

Risks

• There are no specific risks highlighted in this document, as it primarily details routine stock transactions related to executive compensation.

Industry Context

This type of stock transaction is common for executives at publicly traded companies as part of their compensation packages. It is a standard practice for companies to grant restricted stock units that vest over time, aligning executive interests with long-term company performance.

Comparison to Industry Standards

• The vesting schedule of the RSUs, with installments over three years, is a common practice in the technology industry.
• Many large technology companies, such as Microsoft, Apple, and Google, use similar RSU vesting schedules for their executive compensation.
• The sale of shares to cover tax obligations is also a standard practice among executives receiving equity compensation.

Stakeholder Impact

• The transactions have a minimal impact on shareholders, as they are part of routine executive compensation.
• The transactions do not directly impact employees, customers, suppliers, or creditors.

Key Dates

Keywords

IBM, stock, restricted stock units, RSU, Gary Cohn, executive compensation, insider trading, vesting