Form 4: Motorola Solutions SVP's Performance-Based Stock Payouts

Motorola Solutions' SVP, Cynthia Yazdi, reported recent acquisitions and dispositions of common stock and vesting of market stock units with strong payout factors.

Summary

• Cynthia Yazdi, Senior Vice President, Chief of Staff to the Chairman & CEO of Motorola Solutions, Inc. (MSI), reported transactions involving the company's common stock and Market Stock Units (MSUs).
• On March 13, 2026, 520 shares of common stock were acquired upon the vesting and payout of the first tranche (1/3) of MSUs granted on March 13, 2025, at a 108% payout factor, which included 38 shares above the target number.
• On March 13, 2026, 226.72 shares of common stock were disposed of at a price of $473.12 per share to cover tax obligations related to the vesting.
• On March 14, 2026, 725 shares of common stock were acquired upon the vesting and payout of the second tranche (1/3) of MSUs granted on March 14, 2024, at a 140% payout factor, which included 207 shares above the target number.
• On March 14, 2026, 316.1 shares of common stock were disposed of at a price of $473.12 per share to cover tax obligations related to the vesting.
• Following these reported transactions, Ms. Yazdi directly beneficially owns 9,564.52 shares of Motorola Solutions, Inc. common stock.
• An additional 9.73 shares are indirectly beneficially owned through the Motorola Solutions 401(k) Plan, based on a plan statement as of March 2, 2026.
• New Market Stock Units (MSUs) totaling 1,314 units were acquired on March 12, 2026.
• Vesting events for MSUs occurred on March 13, 2026 (482 units) and March 14, 2026 (518 units).

Sentiment

Score: 8

Explanation: StockSavvy.ai views this as a positive indicator, as the executive's performance-based equity awards vested at payout factors significantly above target, reflecting strong stock price performance for Motorola Solutions during the relevant periods.

Positives

• The first tranche of Market Stock Units (MSUs) vested and paid out at a strong 108% payout factor, indicating favorable stock performance relative to the grant date.
• The second tranche of Market Stock Units (MSUs) vested and paid out at an even stronger 140% payout factor, further demonstrating significant stock appreciation relative to its grant date.
• The executive acquired a net total of 702.18 shares of common stock (520 + 725 226.72 316.1) through these transactions, increasing direct ownership.
• A new grant of 1,314 Market Stock Units on March 12, 2026, provides continued long-term incentive for the executive, aligning interests with shareholders.

Negatives

• A total of 542.82 shares (226.72 + 316.1) were disposed of to cover tax obligations, which is a common practice but reduces the executive's direct shareholding.

Risks

• The vesting of Market Stock Units (MSUs) is contingent on the Share Price on the Vesting Date equaling at least 60% of the Share Price on the Date of Grant, introducing market performance risk for future payouts.
• The number of MSUs earned can vary from 0% to 200% of the target based on the company's stock price performance, creating variability in executive compensation and potential for lower payouts if performance targets are not met.

Future Outlook

The filing primarily reports past executive compensation transactions and does not contain explicit forward-looking statements or company guidance. However, the structure of the Market Stock Units (MSUs) implies future vesting events contingent on the company's stock performance over time.

Industry Context

StockSavvy.ai notes that executive compensation tied to performance-based equity awards like Market Stock Units (MSUs) is a common practice across the technology and industrial sectors. This aligns executive incentives with shareholder value creation, as the payout factor is directly linked to the company's stock price performance over time.

Comparison to Industry Standards

• Performance-based equity compensation, such as MSUs with payout factors tied to stock price, is a standard practice in large-cap technology and industrial companies like Motorola Solutions.
• Companies such as Cisco Systems (CSCO) and Honeywell (HON) also utilize similar long-term incentive plans for their executives, often incorporating relative total shareholder return (TSR) or absolute stock price hurdles.
• The reported payout factors of 108% and 140% suggest strong stock performance for Motorola Solutions relative to the grant dates, indicating that the company's stock has outperformed the thresholds set for these specific MSU tranches, which is a positive sign for the effectiveness of its incentive program.

Stakeholder Impact

• Shareholders: The strong payout factors for executive equity awards suggest positive stock performance, which benefits shareholders. The alignment of executive incentives with stock performance is generally viewed favorably.
• Employees: The mention of the Employee Stock Purchase Plan and 401(k) plan indicates broader employee participation in company equity, fostering alignment across the organization.

Next Steps

• Future vesting of remaining Market Stock Units (MSUs) on their respective anniversaries of the grant date, contingent on the company's stock performance and meeting the minimum vesting conditions.

Key Dates

Recommendation

This Form 4 filing details routine executive compensation transactions, specifically the vesting and payout of Market Stock Units and subsequent tax-related dispositions. While the high payout factors indicate strong past stock performance, this filing itself does not provide new fundamental information about the company's operations, financial health, or strategic direction that would warrant a change in investment recommendation. It primarily reflects the mechanics of executive incentive plans and the executive's personal financial management of those awards. Therefore, a 'hold' recommendation is appropriate as it doesn't present a new catalyst for buying or selling.

Keywords

Motorola Solutions, MSI, executive compensation, market stock units, equity awards, insider transactions, common stock, vesting, stock performance