Form 4: Microsoft Director Teri List Reports Stock Award

Microsoft Director Teri List disclosed the acquisition of 145 shares of common stock and beneficial ownership of 22,968.837 fully vested Restricted Stock Units.

Summary

• Teri List, a Director at Microsoft Corporation, reported the acquisition of 145 shares of common stock.
• The 145 shares were a stock award, fully vested on the grant date of January 30, 2026, with a transaction price of $0.
• Teri List also beneficially owns 2,802 shares indirectly through a trust.
• Additionally, 22,968.837 Restricted Stock Units (RSUs) are reported, which are fully vested.
• Delivery of shares from the vested RSUs will occur 30 days after Teri List's separation from service to the Board of Directors.
• A new Power of Attorney was granted by Teri L. List on September 16, 2024, authorizing several individuals, including Julia Stark, to execute and file Form 4 and Form 5 filings on her behalf.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive disclosure, reflecting routine director compensation and continued alignment of a key board member's interests with the company's long-term performance through equity grants.

Positives

• Director Teri List received a stock award of 145 shares, indicating continued compensation and alignment with shareholder interests.
• The reporting of 22,968.837 fully vested Restricted Stock Units (RSUs) represents a significant future equity payout, reinforcing long-term commitment.

Future Outlook

The filing does not contain specific forward-looking statements or guidance regarding company performance, but the vesting schedule of RSUs indicates future share delivery upon separation from service.

Industry Context

StockSavvy.ai notes that director stock awards and RSU grants are standard practices in the technology industry for executive and board compensation, aligning leadership interests with long-term shareholder value. Microsoft's use of such equity compensation is consistent with its peers in attracting and retaining top talent.

Comparison to Industry Standards

• Equity compensation for directors, including stock awards and RSUs, is a common practice across major tech companies like Apple, Google (Alphabet), and Amazon.
• The structure of fully vested RSUs with delivery upon separation from service is a typical retention mechanism, similar to those seen at companies like Salesforce or Oracle, ensuring continued commitment to the board.
• The value of the equity grant, while not explicitly stated in monetary terms, is in line with compensation packages for directors at large-cap technology firms, reflecting the responsibilities and market rates for such roles.

Management Changes

Corporate Governance

Related Party Transactions

• The acquisition of 145 shares of common stock as a stock award from Microsoft Corporation to Director Teri List is a related party transaction.
• The beneficial ownership of 22,968.837 Restricted Stock Units, representing a contingent right to receive Microsoft common stock, is also a related party transaction.

Stakeholder Impact

• Shareholders: The equity grants align the director's interests with long-term shareholder value.

Next Steps

• Delivery of shares from the 22,968.837 vested Restricted Stock Units will occur 30 days after Teri List's separation from service to the Board of Directors.

Key Dates

Recommendation

This Form 4 filing details routine equity compensation for a director and does not provide new information that would fundamentally alter the investment thesis for Microsoft. The grants align director interests with long-term shareholder value, which is a positive, but it's not a catalyst for a 'buy' or 'sell' recommendation. Investors should continue to hold based on broader company fundamentals and market conditions.

Keywords

Microsoft, MSFT, SEC Form 4, Insider Transaction, Stock Award, Restricted Stock Units, Director Compensation, Equity Grant, Corporate Governance