Form 4: Microsoft Executive Kathleen T. Hogan Reports Stock Award

Microsoft's EVP of Human Resources, Kathleen T. Hogan, received a stock award of 7,912 shares, vesting over four years.

Summary

• Kathleen T. Hogan, Executive Vice President of Human Resources at Microsoft, reported a transaction on September 16, 2024.
• She received a stock award of 7,912 shares of Microsoft common stock.
• The stock award was granted under the Executive Incentive Plan.
• The shares will vest over four years, with 25% vesting on August 31, 2025.
• The remaining 75% will vest in 12.5% increments every six months thereafter, contingent on continued employment.
• Following the transaction, Ms. Hogan beneficially owns 158,072.916 shares of Microsoft common stock.

Sentiment

Score: 7

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

Positives

• The stock award incentivizes continued employment and performance of a key executive.
• The vesting schedule aligns with long-term value creation for the company.

Risks

• The vesting of the stock award is contingent on continued employment, which could be a risk if Ms. Hogan were to leave the company.

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, aligning executive interests with shareholder value.

Comparison to Industry Standards

• Stock awards are a standard practice for executive compensation across the technology sector, including companies like Apple, Google, and Amazon.
• The vesting schedule of four years with a cliff vesting at one year followed by semi-annual vesting is a common structure.
• The size of the award is likely commensurate with Ms. Hogan's role and responsibilities within Microsoft, but without further details on her total compensation package, a direct comparison is difficult.

Stakeholder Impact

• The stock award aligns the executive's interests with those of shareholders by incentivizing long-term value creation.
• Employees may view this as a positive sign of the company's commitment to its leadership.

Key Dates

Keywords

stock award, executive compensation, insider trading, vesting, Microsoft, MSFT, Kathleen T. Hogan, Executive Incentive Plan