Form 4: NetApp EVP, CFO Michael J. Berry Reports Changes in Beneficial Ownership
SEC Form 4
Michael J. Berry, EVP and CFO of NetApp, Inc., reports transactions involving common shares and restricted stock units, including vesting and disposal of shares to cover tax obligations.
Summary
- Michael J. Berry, the EVP and CFO of NetApp, Inc., filed a Form 4 detailing changes in his beneficial ownership of the company's securities.
- On May 15, 2024, Berry disposed of 7,719 common shares held indirectly through The Berry Family Trust.
- Also on May 15, 2024, Berry disposed of 3,035 common shares at a price of $110.62.
- These transactions resulted in Berry owning 171,471 shares indirectly through The Berry Family Trust and 168,436 shares directly.
- The transactions also involved the vesting of restricted stock units (RSUs) granted on July 1, 2021, July 1, 2022, and July 13, 2023, which convert into common stock on a one-for-one basis.
- Specifically, 1,438 RSUs from the July 1, 2021 grant, 1,263 RSUs from the July 1, 2022 grant, and 5,018 RSUs from the July 13, 2023 grant vested on May 15, 2024.
- Following these transactions, Berry directly owns 5,750, 10,100, and 15,054 derivative securities respectively.
Sentiment
Score: 5
Explanation: This is a routine filing related to executive compensation and stock ownership. It doesn't contain information that would significantly shift investor sentiment.
Industry Context
Form 4 filings are a routine part of executive compensation and ownership transparency, providing insights into management's alignment with shareholder interests. These filings are common across all publicly traded companies and are required by the SEC.
Comparison to Industry Standards
- Executive compensation packages often include restricted stock units (RSUs) that vest over time, aligning executive incentives with long-term company performance.
- The vesting schedule of 25% initially and then quarterly installments is a fairly standard practice.
- Companies like Pure Storage and Dell Technologies also utilize RSUs as part of their executive compensation plans.
Stakeholder Impact
- Shareholders may be interested in executive stock ownership as it can align management's interests with theirs.
- Employees may be interested in the vesting schedules of RSUs as they are often part of employee compensation packages.
Key Dates
| Date | Description |
|---|---|
| 07/01/2021 | Reporting person was granted 23,000 restricted stock units. |
| 05/15/2022 | First vesting date (25%) for restricted stock units granted on July 1, 2021. |
| 07/01/2022 | Reporting person was granted 20,199 restricted stock units. |
| 05/15/2023 | First vesting date (25%) for restricted stock units granted on July 1, 2022. |
| 07/13/2023 | Reporting person was granted 20,072 restricted stock units. |
| 05/15/2024 | Date of transactions reported, including vesting of RSUs and disposal of shares; First vesting date (25%) for restricted stock units granted on July 13, 2023. |
| 05/17/2024 | Date of signature for the Form 4 filing. |
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