Form 4: Lam Research Executive VP Patrick Lord Reports Stock Transactions

Sentiment:

SEC Form 4 Filing


Executive Vice President Patrick J. Lord of Lam Research Corporation reports the vesting of market-based performance restricted stock units and adjustments due to a stock split.

Summary

  • Patrick J. Lord, an Executive Vice President at Lam Research Corp (LRCX), filed a Form 4 detailing changes in beneficial ownership.
  • The report includes the vesting of 17,309 shares of common stock related to market-based performance restricted stock units on February 4, 2025.
  • The vesting of these units is tied to Lam Research's total shareholder return relative to the PHLX Semiconductor Sector Total Return Index.
  • The report also reflects an adjustment for a ten-for-one forward stock split effective after market close on October 2, 2024.
  • Lord directly owns 62,261 shares of Lam Research common stock following the reported transactions.

Sentiment

Score: 5

Explanation: The document is a standard regulatory filing, so the sentiment is neutral.

Industry Context

This filing is a routine disclosure related to executive compensation and stock ownership, common in publicly traded companies like Lam Research. It provides transparency to investors regarding insider transactions.

Comparison to Industry Standards

  • Executive compensation packages including stock options and restricted stock units are standard practice among semiconductor equipment manufacturers such as Applied Materials (AMAT) and ASML Holding (ASML).
  • The vesting schedules and performance-based criteria for restricted stock units are generally aligned with industry norms to incentivize long-term value creation and align executive interests with shareholder returns.
  • The use of total shareholder return relative to a semiconductor sector index (PHLX Semiconductor Sector Total Return Index) is a common benchmark for performance-based equity awards in the semiconductor industry.

Stakeholder Impact

  • The filing provides transparency to shareholders regarding executive compensation and stock ownership.
  • It assures stakeholders that executive incentives are aligned with company performance and shareholder value.

Key Dates

DateDescription
03/01/2022Reporting Person received a target grant of 30,400 Market-based Performance Restricted Stock Units
02/01/2022 01/31/2025Performance period for Market-based Performance Restricted Stock Units vesting on 03/01/2025
03/01/2023First vesting installment date for 10,130 Employee Stock Options
03/01/2024First vesting installment date for 28,140 Employee Stock Options and second vesting installment date for 10,130 Employee Stock Options
10/02/2024Ten-for-one forward stock split effective after market close
02/04/2025Transaction date for vesting of 17,309 shares of common stock and Market-based Performance Restricted Stock Units
03/01/2025Vesting date for Market-based Performance Restricted Stock Units, second vesting installment date for 28,140 Employee Stock Options and first vesting installment date for 31,830 Employee Stock Options and third vesting installment date for 10,130 Employee Stock Options
03/01/2026Vesting date for Market-based Performance Restricted Stock Units, third vesting installment date for 28,140 Employee Stock Options and second vesting installment date for 31,830 Employee Stock Options
03/01/2027Third vesting installment date for 31,830 Employee Stock Options
03/01/2029Expiration date for 10,130 Employee Stock Options
03/01/2030Expiration date for 28,140 Employee Stock Options
03/01/2031Expiration date for 31,830 Employee Stock Options
02/06/2025Date of Form 4 filing

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