Form 4: Masimo EVP Micah Young Reports Stock Transactions Following RSU Vesting
SEC Form 4
EVP and CFO of Masimo Corporation, Micah Young, reports acquisition and disposal of shares related to vesting of performance restricted stock units and tax withholding obligations.
Summary
- Micah Young, EVP & Chief Financial Officer of Masimo Corporation, filed a Form 4 detailing changes in beneficial ownership.
- On February 28, 2024, Young acquired 1,004 shares of common stock upon vesting of performance restricted stock units (RSUs).
- Also on February 28, 2024, 388 shares were disposed of to cover tax withholding obligations at a price of $128.7 per share.
- The report also reflects previously unreported withholding of 7,705 shares in 2021 and 4,923 shares in 2022 to satisfy tax obligations related to RSU vesting.
- On March 1, 2024, Young was granted a non-qualified stock option to purchase 11,954 shares at $126.49, vesting over five years.
- Additionally, on March 1, 2024, Young was granted 30,000 restricted stock units, vesting in two equal installments on March 1, 2025, and March 1, 2026.
Sentiment
Score: 6
Explanation: The document is a neutral regulatory filing detailing stock transactions. The vesting of performance RSUs suggests positive performance, but the filing itself is primarily informational.
Positives
- The vesting of performance restricted stock units indicates that the company achieved certain pre-established performance objectives for FY2023.
Future Outlook
The document outlines future vesting dates for restricted stock units and the vesting schedule for the granted stock options.
Industry Context
Form 4 filings are standard practice for reporting changes in beneficial ownership by company insiders, providing transparency to investors.
Comparison to Industry Standards
- Stock option and RSU grants are common compensation practices in the technology and healthcare industries, used to align management's interests with those of shareholders.
- Vesting schedules, such as the five-year vesting for the stock options and the two-year vesting for the RSUs, are typical in the industry to incentivize long-term commitment.
- Companies like Medtronic and Edwards Lifesciences also utilize similar equity-based compensation plans for their executives.
Stakeholder Impact
- The vesting of RSUs and granting of stock options can incentivize management to improve company performance, benefiting shareholders.
- Tax withholding obligations impact the number of shares ultimately received by the executive.
Key Dates
| Date | Description |
|---|---|
| 2021 | Previously unreported withholding of 7,705 shares for tax obligations. |
| 2022 | Previously unreported withholding of 4,923 shares for tax obligations. |
| 02/26/2021 | Reporting Person was granted performance restricted stock units which vested on February 28, 2024. |
| 02/28/2024 | Vesting of 1,004 performance restricted stock units. |
| 02/28/2024 | Disposal of 388 shares to cover tax withholding. |
| 03/01/2024 | Grant date of non-qualified stock option for 11,954 shares. |
| 03/01/2024 | Grant date of 30,000 restricted stock units. |
| 03/01/2025 | Vesting of 50% of the 30,000 restricted stock units. |
| 03/01/2026 | Vesting of the remaining 50% of the 30,000 restricted stock units. |
| 03/01/2034 | Expiration date of non-qualified stock option. |
Disclaimer:The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.