Form 4: NETSCOUT CEO Anil Singhal Reports Vesting of Restricted Stock Units and Tax Withholding

NETSCOUT Systems, Inc. President and CEO Anil K. Singhal reported the vesting of 10,800 restricted stock units and the subsequent withholding of 3,776 shares for tax obligations, increasing his direct beneficial ownership to 419,922 shares.

Summary

• Anil K. Singhal, President & CEO, Director, and 10% Owner of NETSCOUT Systems, Inc. (NTCT), reported transactions on June 15, 2025.
• He acquired 10,800 shares of Common Stock through the vesting of previously granted restricted stock units.
• Concurrently, 3,776 shares of Common Stock were disposed of at a price of $23.25 per share to satisfy tax withholding obligations related to the RSU vesting. This price represents the closing price of the Company's Common Stock on June 13, 2025.
• Following these transactions, Mr. Singhal directly beneficially owns 419,922 shares of Common Stock.
• Additionally, 1,453,238 shares of Common Stock are indirectly beneficially owned by various trusts for the benefit of Mr. Singhal and his spouse.
• He also holds 124,200 unvested Restricted Stock Units directly.

Sentiment

Score: 5

Explanation: The document reports routine executive compensation events (RSU vesting and tax withholding) which are neutral in sentiment. They do not indicate any significant positive or negative operational or financial developments for the company.

Positives

• The vesting of 10,800 restricted stock units indicates the fulfillment of compensation agreements, potentially aligning management's interests with shareholders.
• The increase in direct beneficial ownership to 419,922 shares (after tax withholding) demonstrates continued equity stake by the CEO.

Negatives

• 3,776 shares were sold (withheld) to cover tax obligations, which is a routine event but reduces the total number of shares held directly.

Future Outlook

NA

Industry Context

This Form 4 filing details a routine compensation event for a senior executive at NETSCOUT Systems, Inc., a company operating in the cybersecurity and network performance management industry. Such filings are common across all industries as part of executive compensation packages involving equity awards.

Comparison to Industry Standards

• The vesting of restricted stock units and subsequent tax withholding is a standard practice in executive compensation across publicly traded companies, including those in the technology and cybersecurity sectors.
• This type of transaction does not provide specific comparative data against industry peers like Cisco, Palo Alto Networks, or Fortinet, as it reflects an individual's compensation event rather than operational performance.

Related Party Transactions

• Shares of Common Stock are indirectly beneficially owned by various trusts for the benefit of the reporting person and his spouse, which are considered related parties.

Stakeholder Impact

• Shareholders: The vesting and tax withholding are routine and expected, reflecting the ongoing compensation structure for the CEO. The slight reduction in direct shares due to tax withholding is a normal part of equity compensation.
• Employees: No direct impact on general employees is indicated.
• Customers/Suppliers/Creditors: No direct impact on these stakeholders is indicated.

Key Dates

Keywords

NETSCOUT Systems Inc, NTCT, Anil K Singhal, SEC Form 4, Insider Trading, Restricted Stock Units, RSU Vesting, Stock Ownership, CEO Compensation, Tax Withholding