Form 4: Lumentum Holdings Executive Retort Acquires Shares Through Performance Stock Units, Then Disposes of Shares to Cover Taxes

Vincent Retort, President of Industrial Tech at Lumentum Holdings, acquired shares through performance stock units and then disposed of some shares to cover income tax obligations.

Summary

• On August 19, 2024, Vincent Retort, President, Industrial Tech. at Lumentum Holdings Inc., acquired 9,213 shares of common stock due to the vesting of performance stock units (PSUs).
• The acquisition was based on the Board of Directors' determination that certain performance conditions were met related to PSUs granted on September 10, 2021.
• Also on August 19, 2024, Retort disposed of 3,288 shares of common stock at a price of $52.82 per share.
• This disposition was to cover income tax withholding and remittance obligations associated with the vesting of the PSUs.
• Following these transactions, Retort beneficially owns 160,206 shares of Lumentum Holdings Inc. common stock.

Sentiment

Score: 6

Explanation: The sentiment is neutral. The vesting of PSUs is a positive sign of performance, but the sale of shares for tax purposes is a routine transaction.

Positives

• The vesting of performance stock units suggests that performance targets were met, which could be viewed positively.

Negatives

• The sale of shares to cover tax obligations, while common, could be interpreted as a slight negative, although it's a standard practice.

Industry Context

Executive stock transactions are common in publicly traded companies and are closely monitored by investors for insights into management's confidence in the company's future prospects. The vesting of PSUs indicates that the company met certain performance goals.

Comparison to Industry Standards

• Executive compensation packages often include performance-based equity awards like PSUs to align management's interests with those of shareholders.
• Companies like Coherent, IPG Photonics, and II-VI Incorporated (now Coherent) also utilize similar equity compensation strategies.
• The vesting of PSUs and subsequent sale for tax obligations is a standard practice across the industry.

Stakeholder Impact

• The vesting of PSUs and meeting of performance targets can positively impact shareholder confidence.
• The transaction itself has a limited direct impact on other stakeholders.

Key Dates