Form 4: Microsoft Executive Judson Althoff Receives Stock Award

Microsoft's Executive Vice President, Judson Althoff, received a stock award of 23,374 shares, vesting over four years.

Summary

• Judson Althoff, Executive Vice President and Chief Commercial Officer at Microsoft, received a stock award.
• The award consists of 23,374 shares of Microsoft common stock.
• The shares were awarded on September 16, 2024.
• The stock award will vest over four years.
• 25% of the shares will vest on August 31, 2025.
• The remaining shares will vest in 12.5% increments every six months thereafter, subject to continued employment.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, which is generally positive for aligning management and shareholder interests. There are no negative implications.

Positives

• The stock award serves as an incentive for Judson Althoff to remain with Microsoft.
• The vesting schedule encourages long-term commitment and performance.

Risks

• The stock award is subject to continued employment, meaning Althoff would forfeit unvested shares if he leaves Microsoft before the vesting period is complete.

Future Outlook

The stock award is designed to incentivize long-term performance and retention of the executive.

Industry Context

Stock awards are a common form of executive compensation in the technology industry, used to align the interests of management with those of shareholders.

Comparison to Industry Standards

• Stock awards are a standard practice for executive compensation at large technology companies like Microsoft.
• Companies such as Apple, Google, and Amazon also use similar vesting schedules for their executive stock awards.
• The four-year vesting period with a cliff vest followed by semi-annual vesting is a common structure in the industry.

Stakeholder Impact

• The stock award aligns the executive's interests with those of shareholders by incentivizing long-term value creation.
• The award does not have a direct impact on employees, customers, or suppliers.

Key Dates

Keywords

stock award, executive compensation, vesting, Microsoft, Judson Althoff, equity