Form 4: KLA Corp Executive Virendra A. Kirloskar Reports Stock Transactions
SEC Form 4 Filing
Virendra A. Kirloskar, SVP & Chief Accounting Officer of KLA Corp, reports stock transactions including withholding of shares for tax obligations upon vesting of restricted stock units and a sale under a pre-arranged trading plan.
Summary
- On August 6, 2024, Virendra A. Kirloskar, SVP & Chief Accounting Officer of KLA Corp, reported transactions involving KLA common stock.
- These transactions include the withholding of shares to cover tax obligations upon the vesting of restricted stock units (RSUs).
- Specifically, 200.304 shares were withheld related to RSUs granted on August 6, 2020, where 25% vested on August 6, 2024.
- Additionally, 601.406 shares were withheld related to performance-based RSUs granted on August 6, 2020, where 50% vested on August 6, 2024.
- Kirloskar also sold 814 shares of KLA common stock at a price of $705.01 per share.
- This sale was executed under a Rule 10b5-1 trading plan adopted on February 1, 2024.
- Following these transactions, Kirloskar beneficially owns 2,615.595 shares of KLA common stock, which includes 2,314.981 shares issuable upon vesting of RSUs.
Sentiment
Score: 5
Explanation: The document is a standard SEC filing detailing stock transactions by a company executive. It doesn't inherently convey positive or negative sentiment, but rather provides factual information about the executive's trading activity.
Industry Context
This Form 4 filing is a routine disclosure required by the SEC for corporate insiders, providing transparency into their trading activities. It reflects standard compensation practices involving stock-based awards and pre-planned trading strategies.
Comparison to Industry Standards
- Stock-based compensation is a common practice among publicly traded companies, particularly in the technology sector, to align executive incentives with shareholder value.
- The use of Rule 10b5-1 trading plans is a standard method for corporate insiders to sell shares while avoiding accusations of insider trading.
- Companies like Applied Materials (AMAT) and Lam Research (LRCX), which are competitors of KLA Corp, also utilize similar compensation and trading practices for their executives.
Stakeholder Impact
- The transactions may have a minor impact on shareholders due to the sale of shares by an executive, but the overall impact is likely minimal given the pre-planned nature of the sale and the relatively small number of shares involved.
Key Dates
| Date | Description |
|---|---|
| 2020-08-06 | Reporting Person was granted restricted stock units ('RSUs') for 1,618.000 shares of KLA common stock. |
| 2024-02-01 | Rule 10b5-1 trading plan adopted by the Reporting Person. |
| 2024-08-05 | Closing price of KLA common stock used for calculating the number of shares to be withheld. |
| 2024-08-06 | Date of stock transactions, including vesting of RSUs and sale of shares. |
| 2024-08-06 | Remaining twenty-five percent (25%) of the RSUs vested. |
| 2024-08-06 | Remaining fifty percent (50%) of the performance-based restricted stock units vested. |
| 2024-08-08 | Date of signature for the Form 4 filing. |
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