Form 4: KLA Corp Executive Mary Beth Wilkinson Reports Changes in Beneficial Ownership

Mary Beth Wilkinson, EVP, CLO and Secretary of KLA Corp, reports acquisition of common stock through restricted stock units (RSUs) and performance-based restricted stock units (PRSUs).

Summary

• On August 1, 2024, Mary Beth Wilkinson, EVP, CLO and Secretary of KLA Corp, reported changes in beneficial ownership of KLA common stock.
• Wilkinson acquired shares through the vesting of restricted stock units (RSUs) and performance-based restricted stock units (PRSUs).
• She received a grant of 1,271.694 RSUs that vest 25% annually from the grant date.
• PRSUs granted on August 5, 2021, vested at the maximum level (150% of target) due to KLA's free cash flow performance, resulting in 3,844.5 shares.
• PRSUs granted on August 4, 2022, vested at 131% of target shares due to KLA's non-GAAP earnings per diluted share performance, resulting in 2,198.18 shares.
• Following these transactions, Wilkinson beneficially owns 13,678.374 shares of KLA common stock, including shares issuable upon vesting of RSUs.

Sentiment

Score: 7

Explanation: The document indicates strong performance by KLA Corp, as evidenced by the vesting of PRSUs at or above target levels. This suggests positive financial results and effective management, leading to a moderately positive sentiment.

Positives

• The vesting of PRSUs at maximum or above-target levels indicates strong performance by KLA Corp in terms of free cash flow and non-GAAP earnings per diluted share.
• The increased share ownership aligns the executive's interests with those of the shareholders.

Future Outlook

The remaining portions of the PRSUs will vest in the future, subject to continued service of the reporting person.

Industry Context

Executive compensation through stock grants is a common practice in the semiconductor industry to align management interests with shareholder value. Performance-based vesting further incentivizes executives to achieve specific financial goals.

Comparison to Industry Standards

• Companies like Applied Materials (AMAT) and Lam Research (LRCX) also utilize RSUs and PRSUs as part of their executive compensation packages.
• The vesting schedules and performance metrics (free cash flow, earnings per share) are typical benchmarks used in the semiconductor equipment industry.
• The percentile-based performance targets (75th percentile for free cash flow) are designed to ensure KLA outperforms its peers.

Stakeholder Impact

• Shareholders benefit from the increased alignment of executive interests with company performance.
• Employees may be positively impacted by the company's strong financial performance.

Key Dates