Form 4: NVIDIA Executive Timothy S. Teter Reports Stock Award and Vesting

NVIDIA's EVP, General Counsel and Secretary, Timothy S. Teter, reported the acquisition of 61,002 shares of common stock through performance-based awards and employee stock purchase plan.

Summary

• Timothy S. Teter, an executive at NVIDIA, reported acquiring 56,170 shares of common stock based on the company's performance during the fiscal year ended January 28, 2024.
• These shares will vest over four years, starting with 25% on March 20, 2024, and the remainder in 6.25% increments every three months.
• Additionally, Teter acquired 4,832 shares based on performance from January 31, 2021, to January 28, 2024, which will fully vest on March 20, 2024.
• Teter also purchased 110 shares through NVIDIA's Employee Stock Purchase Plan on February 29, 2024.
• After these transactions, Teter directly owns 110,850 shares and indirectly owns 216,767 shares through The Horne Teter Family Living Trust.

Sentiment

Score: 7

Explanation: The document reflects standard executive compensation practices and does not indicate any significant positive or negative events. The vesting of performance-based shares suggests the company is meeting its goals.

Positives

• The vesting of performance-based shares indicates that NVIDIA met certain operational goals.
• The acquisition of shares through the Employee Stock Purchase Plan shows Teter's confidence in the company's future.
• The vesting of shares is staggered over time, aligning executive compensation with long-term company performance.

Future Outlook

The document does not contain any forward-looking statements or guidance.

Industry Context

This filing is a routine disclosure of stock transactions by a company executive, which is common practice in publicly traded companies. It reflects the company's compensation structure and alignment of executive interests with shareholder value.

Comparison to Industry Standards

• Stock-based compensation is a common practice among technology companies like NVIDIA, used to attract and retain top talent.
• The vesting schedules described are typical for performance-based equity awards, aligning executive compensation with long-term company performance.
• Companies like AMD, Intel, and Qualcomm also use similar stock-based compensation plans for their executives.

Stakeholder Impact

• The vesting of shares aligns executive interests with shareholder value.
• The stock awards are part of the company's compensation strategy to attract and retain talent.

Next Steps

• The remaining 75% of the 56,170 shares will vest in 6.25% increments every three months after March 20, 2024.
• The executive will continue to report any changes in beneficial ownership of NVIDIA stock.

Key Dates

Keywords

NVIDIA, stock, executive, vesting, performance, shares, equity, employee stock purchase plan, insider trading, SEC Form 4