Form 4: Knowles Corp Senior Vice President & CFO John S. Anderson Reports Transactions in Company Stock

John S. Anderson, Senior Vice President & CFO of Knowles Corp, reports acquisition and disposal of company stock, including transactions related to tax liabilities, restricted stock units, and performance share units.

Summary

• On February 18, 2025, John S. Anderson, Senior Vice President & CFO of Knowles Corp, reported transactions involving Knowles Corp common stock.
• These transactions included the disposal of 12,006 shares to cover tax liabilities at a price of $18.34 per share, related to the settlement of performance share units granted on February 7, 2022.
• Anderson also acquired 35,442 restricted stock units (RSUs) and 28,382 shares related to the settlement of performance share units (PSUs).
• The PSUs were granted under the company's Equity Incentive Plan, with the final number of shares depending on performance goals achieved between January 1, 2022, and December 31, 2024.
• Additionally, on December 10, 2024, 93 shares of Knowles common stock held in Anderson's 401(k) plan were liquidated due to the elimination of the Knowles Stock Fund as an investment option.

Sentiment

Score: 6

Explanation: The sentiment is neutral as the transactions are routine and related to executive compensation and tax obligations. There is no indication of unusual or concerning activity.

Positives

• The acquisition of 35,442 restricted stock units indicates continued alignment with the company's long-term performance.
• The settlement of performance share units suggests that performance goals were met during the specified period.

Future Outlook

The vesting of restricted stock units over three years suggests a continued alignment of executive compensation with the company's performance.

Industry Context

Insider transactions are routinely monitored to provide insights into management's perspective on the company's valuation and future prospects. The acquisition of restricted stock units and settlement of performance share units are common forms of executive compensation in publicly traded companies.

Comparison to Industry Standards

• Executive compensation packages often include a mix of salary, stock options, restricted stock units, and performance-based incentives.
• Companies like Texas Instruments and Analog Devices also utilize similar equity-based compensation plans to align executive interests with shareholder value.
• The vesting schedules and performance metrics associated with these plans vary across companies but generally aim to reward long-term growth and profitability.

Stakeholder Impact

• The transactions have a minor impact on shareholders as they relate to executive compensation and do not indicate a change in the company's fundamentals.
• Employees may be affected by changes to the 401(k) plan investment options.

Key Dates

Keywords

Knowles Corp, John S. Anderson, stock transactions, Form 4, restricted stock units, performance share units, 401(k) plan, insider trading