Form 4: Intuitive Surgical Director Amal M. Johnson Executes Stock Option and Sells Shares Under 10b5-1 Trading Plan

Amal M. Johnson, a director at Intuitive Surgical, exercised stock options and sold shares of common stock under a pre-arranged 10b5-1 trading plan.

Summary

• On August 1, 2024, Amal M. Johnson, a director of Intuitive Surgical Inc. (ISRG), executed a transaction involving the company's stock.
• Johnson exercised non-qualified stock options to acquire 2,943 shares of common stock at a price of $71.3233 per share.
• Simultaneously, Johnson sold 2,943 shares of common stock at a price of $443.3 per share.
• These transactions were conducted under a pre-arranged trading plan that complies with SEC Rule 10b5-1, set to expire on May 2, 2025.
• Following these transactions, Johnson directly owns 12,275 shares of Intuitive Surgical common stock.
• Johnson has granted power of attorney to several individuals at Intuitive Surgical and Latham & Watkins LLP to handle SEC filings related to company stock transactions.

Sentiment

Score: 6

Explanation: Neutral sentiment as the transactions are part of a pre-planned trading strategy and do not necessarily reflect a change in the director's confidence in the company.

Positives

• The transactions were executed under a pre-arranged 10b5-1 trading plan, indicating a lack of insider information influencing the trades.

Future Outlook

The director's transactions will continue to be governed by the 10b5-1 trading plan until its expiration on May 2, 2025.

Industry Context

Executive stock transactions are common in publicly traded companies and are closely monitored by regulators and investors. The use of 10b5-1 trading plans is a standard practice to avoid accusations of insider trading.

Comparison to Industry Standards

• Executive compensation packages in the medical device industry often include stock options as a significant component.
• Companies like Stryker (SYK) and Medtronic (MDT) also utilize stock options and similar equity-based compensation for their executives.
• The use of 10b5-1 trading plans is a widespread practice among executives in publicly traded companies to manage their stock transactions in compliance with insider trading regulations.

Stakeholder Impact

• The transactions may have a minor impact on shareholders due to the change in ownership, but the pre-planned nature of the trades mitigates concerns about insider trading.

Key Dates