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

Executive Vice President Patrick J. Lord reports acquisition and disposal of Lam Research Corp (LRCX) stock and derivative securities on February 28, 2025.

Summary

• On February 28, 2025, Patrick J. Lord, an Executive Vice President at Lam Research Corp (LRCX), reported transactions involving the company's stock.
• These transactions included the acquisition of 27,043 shares of common stock and the disposal of 8,430 shares at $76.74, 1,675 shares at $76.74, 2,325 shares at $76.74 and 1,750 shares at $76.74 to cover tax obligations.
• Lord also acquired 40,565 market-based performance restricted stock units.
• Following these transactions, Lord directly owns 75,124 shares of Lam Research common stock and 40,565 market-based performance restricted stock units.

Sentiment

Score: 5

Explanation: This is a neutral disclosure of stock transactions. It doesn't inherently indicate positive or negative sentiment about the company's prospects.

Positives

• The acquisition of 27,043 shares of common stock by the Executive Vice President indicates confidence in the company's future performance.

Future Outlook

The market-based performance restricted stock units will vest between 0% and 150% on 2/28/2028, based on Lam Research's Total Shareholder Return relative to the PHLX Semiconductor Total Return Index during the performance period of 02/03/2025 through 02/02/2028.

Industry Context

This filing is a routine disclosure of stock transactions by a company executive, which is common in publicly traded companies. It provides transparency into the executive's holdings and transactions in the company's stock.

Comparison to Industry Standards

• Executive compensation packages often include restricted stock units and performance-based incentives to align management's interests with those of shareholders.
• The vesting schedule and performance metrics are typical for companies in the semiconductor industry, such as Applied Materials (AMAT) and ASML Holding (ASML).
• These companies also use total shareholder return (TSR) relative to industry peers as a key performance indicator.

Stakeholder Impact

• The transactions may have a minor impact on shareholders, as they provide insight into the executive's perspective on the company's stock value.
• The vesting of restricted stock units could potentially dilute existing shareholders' equity over time.

Key Dates