Form 4: Nlight Director Acquires Shares Through Stock Units in Lieu of Cash Retainer

Director Gary Locke acquired 2,980 shares of Nlight, Inc. common stock through restricted stock units in lieu of cash retainer fees.

Summary

• Gary Locke, a director at Nlight, Inc., acquired 2,980 shares of common stock on January 2, 2025.
• The shares were obtained through restricted stock units (RSUs) in lieu of cash retainer fees for board service.
• Each RSU represents a contingent right to receive one share of common stock upon vesting.
• The number of RSUs granted was calculated by dividing the cash retainer fee amount by the closing stock price on the grant date.
• The RSUs will vest on December 31, 2025, contingent on the director's continued service.

Sentiment

Score: 7

Explanation: The document reflects a standard practice of director compensation, which is generally viewed positively as it aligns interests. There are no negative implications.

Positives

• The acquisition of shares by a director demonstrates confidence in the company's future.
• Using stock units instead of cash can align director interests with shareholder value.

Risks

• The vesting of the restricted stock units is contingent on the director's continued service, which could be a risk if the director leaves before the vesting date.

Future Outlook

The restricted stock units will vest on December 31, 2025, contingent on the director's continued service.

Management Comments

• The reporting person has elected to receive restricted stock units in lieu of cash retainer fees payable for service on the Issuer's board of directors and any committees thereof.

Industry Context

The use of restricted stock units as compensation for board members is a common practice in the corporate world, aligning the interests of directors with the long-term performance of the company.

Comparison to Industry Standards

• Many companies, such as those in the S&P 500, use a mix of cash and equity compensation for their board members.
• The specific amount of equity granted varies based on company size, performance, and industry benchmarks.
• Companies like Texas Instruments and Intel also use restricted stock units as part of their director compensation packages.

Stakeholder Impact

• Shareholders may view this positively as it aligns director interests with company performance.
• Employees may see this as a sign of stability and commitment from the board.

Key Dates

Keywords

restricted stock units, director, stock acquisition, Nlight Inc, board of directors, equity compensation, insider trading