Form 4: Microsoft Executive Judson Althoff Reports Stock Transactions Following Vesting

Microsoft's Executive Vice President, Judson Althoff, reported the acquisition of 32,881 shares of common stock due to vesting and the subsequent disposal of 18,909.765 shares to cover tax obligations.

Summary

• Judson Althoff, an Executive Vice President at Microsoft, reported transactions involving Microsoft common stock.
• On September 3, 2024, Althoff acquired 32,881 shares of common stock due to the vesting of a performance stock award.
• The performance stock award was granted in September 2021 and vested after a three-year performance period ending on June 30, 2024.
• Concurrently, Althoff disposed of 18,909.765 shares of common stock at a price of $417.14 per share to satisfy tax obligations related to the vesting.
• Following these transactions, Althoff beneficially owns 118,919.889 shares of Microsoft common stock.

Sentiment

Score: 7

Explanation: The document reflects standard executive compensation practices and does not indicate any significant positive or negative sentiment. The vesting of shares is a positive sign of performance, but the subsequent disposal is a routine tax-related transaction.

Positives

• The vesting of the performance stock award indicates that performance goals were met over the three-year period.
• The acquisition of shares increases Judson Althoff's stake in the company.

Negatives

• The disposal of shares to cover tax obligations reduces the total number of shares held by Judson Althoff.

Risks

• There are no specific risks mentioned in this document, as it primarily details stock transactions related to vesting and tax obligations.

Industry Context

This is a routine filing related to executive compensation and is common for publicly traded companies. It reflects the standard practice of granting stock awards to executives as part of their compensation packages.

Comparison to Industry Standards

• Stock-based compensation is a common practice among large technology companies like Microsoft, with vesting schedules and tax-related disposals being standard.
• Companies like Apple, Google (Alphabet), and Amazon also use similar stock award programs for their executives.
• The vesting period of three years is typical for performance-based stock awards in the tech industry.
• The tax-related disposal of shares is a standard procedure to cover the tax liabilities associated with the vesting of stock awards.

Stakeholder Impact

• The transactions have a minor impact on shareholders as they are related to executive compensation and do not represent a significant change in the company's overall financial position.
• The transactions are part of the compensation package for Judson Althoff, a key executive, and are therefore relevant to employees.

Key Dates

Keywords

Microsoft, stock, vesting, Judson Althoff, performance stock award, executive compensation, insider trading, SEC Form 4