Form 4: KLA Corp CEO Richard Wallace Reports Stock Disposals to Cover Tax Obligations After RSU Vesting
SEC Form 4 Filing
Richard Wallace, President and CEO of KLA Corp, reported the disposal of shares to cover tax withholding obligations following the vesting of restricted stock units (RSUs).
Summary
- Richard Wallace, the President and CEO of KLA Corp, filed a Form 4 detailing changes in his beneficial ownership of the company's stock.
- The transactions involve the disposal of common stock to cover tax withholding requirements upon the vesting of restricted stock units (RSUs).
- These RSUs were granted on August 3, 2023 (15,684 shares), August 4, 2022 (16,097 shares), and August 5, 2021 (17,298 shares).
- On August 5, 2021, performance-based restricted stock units also vested.
- The disposals occurred on August 3, 2024 (1,944.032 shares), August 4, 2024 (1,995.1 shares), and August 5, 2024 (2,143.84 shares and 9,648.764 shares), all at a price of $696.17 per share.
- Following these transactions, Wallace directly owns 135,274.108 shares and indirectly owns 5,435 shares through a trust.
Sentiment
Score: 6
Explanation: The document is a routine disclosure of stock transactions related to executive compensation. It doesn't contain any information that would significantly impact investor sentiment positively or negatively.
Industry Context
Executive compensation and stock ownership are standard disclosures for publicly traded companies, providing transparency into management's alignment with shareholder interests.
Comparison to Industry Standards
- Stock-based compensation is a common practice among publicly traded companies, particularly in the technology sector, to incentivize and retain key employees.
- Companies like Applied Materials (AMAT) and Lam Research (LRCX), which are competitors of KLA Corp, also utilize RSUs as part of their executive compensation packages.
- The vesting schedules and tax withholding practices described in the document are typical for RSU grants.
Stakeholder Impact
- The transactions have a minimal impact on shareholders, as they are related to tax obligations and do not indicate a change in the executive's long-term commitment to the company.
- Employees holding RSUs may be interested in the details of the vesting and tax withholding process.
Key Dates
| Date | Description |
|---|---|
| 03/27/2001 | Date of the Wallace Living Trust u/a/d, as amended |
| 08/05/2021 | Date the Reporting Person was granted restricted stock units for 17,298.000 shares of KLA common stock |
| 08/05/2021 | Date the Reporting Person was granted performance-based restricted stock units |
| 08/04/2022 | Date the Reporting Person was granted restricted stock units for 16,097.000 shares of KLA common stock |
| 08/03/2023 | Date the Reporting Person was granted restricted stock units for 15,684.000 shares of KLA common stock |
| 08/02/2024 | Closing price of KLA common stock used for calculating shares withheld |
| 08/03/2024 | Date of transaction where 1,944.032 shares were disposed of |
| 08/03/2024 | Twenty-five percent (25%) of the RSUs vested |
| 08/04/2024 | Date of transaction where 1,995.1 shares were disposed of |
| 08/04/2024 | Twenty-five percent (25%) of the RSUs vested |
| 08/05/2024 | Date of transaction where 2,143.84 shares were disposed of |
| 08/05/2024 | Date of transaction where 9,648.764 shares were disposed of |
| 08/05/2024 | Twenty-five percent (25%) of the RSUs vested |
| 08/05/2024 | 50% of the performance-based restricted stock units granted on August 5, 2021 vested |
| 08/06/2024 | Date of signature for the Form 4 filing |
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