Form 4: Microsoft Director Penny S. Pritzker Reports Acquisition of Restricted Stock Units

Microsoft director Penny S. Pritzker acquired 23,634 restricted stock units, which will convert to common stock after her service on the board ends.

Summary

• Penny S. Pritzker, a director at Microsoft, reported the acquisition of 23,634 restricted stock units.
• These restricted stock units represent a contingent right to receive one share of Microsoft common stock each.
• The restricted stock units are fully vested, meaning they have met the conditions to be converted to shares.
• The shares will be delivered to Ms. Pritzker 30 days after she leaves the Microsoft Board of Directors.
• Dividend equivalent rights accrue on these units as dividends are paid on Microsoft's common stock.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction of equity compensation for a board member, which is generally viewed positively as it aligns interests. There are no negative implications.

Positives

• The acquisition of restricted stock units aligns the director's interests with the company's performance.
• The vesting of the units indicates that performance conditions have been met.

Future Outlook

The shares underlying the restricted stock units will be delivered to Ms. Pritzker 30 days after her departure from the Board of Directors.

Industry Context

This is a standard practice for compensating board members and aligning their interests with the company's long-term performance. It is common for technology companies to use equity-based compensation.

Comparison to Industry Standards

• Equity-based compensation, such as restricted stock units, is a common practice among large technology companies like Microsoft.
• Companies such as Apple, Google (Alphabet), and Amazon also use similar methods to compensate their directors and executives.
• The vesting and delivery terms are typical, with a delay after separation from service to ensure continued alignment of interests.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders as it aligns the director's interests with the company's performance.
• The transaction has no direct impact on employees, customers, suppliers, or creditors.

Next Steps

• The shares will be delivered to Ms. Pritzker 30 days after her separation from the Board of Directors.

Key Dates

Keywords

Microsoft, Director, Penny S. Pritzker, Restricted Stock Units, MSFT, Beneficial Ownership, SEC Form 4, Equity Securities