Form 4: PagerDuty CEO John DiLullo Receives Equity Grant

CEO John D. DiLullo was granted 824,499 restricted stock units as part of PagerDuty's 2019 Equity Incentive Plan.

Summary

• CEO John D. DiLullo received a grant of 824,499 restricted stock units (RSUs) on May 11, 2026.
• The grant was issued under the company's 2019 Equity Incentive Plan.
• The RSUs represent a contingent right to receive one share of common stock per unit upon vesting.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a routine administrative filing regarding executive compensation that does not signal a change in company strategy or financial health.

Positives

• Alignment of executive interests with long-term shareholder value through equity-based compensation.

Negatives

• Potential for future shareholder dilution upon the vesting and issuance of the underlying common stock.

Risks

• Vesting is subject to continued employment, which could be impacted by future leadership changes or company performance.

Future Outlook

The RSU grant vests over a four-year period, with 25% vesting on April 2, 2027, and the remaining 75% vesting in twelve equal quarterly installments thereafter.

Industry Context

StockSavvy.ai notes that large equity grants to CEOs in the software-as-a-service (SaaS) sector are standard practice for retention and long-term incentive alignment, though they are often scrutinized by investors for their dilutive impact.

Comparison to Industry Standards

• The four-year vesting schedule is consistent with standard executive compensation practices in the technology industry.
• The use of RSUs as a primary equity vehicle aligns with common practices among mid-to-large cap software companies.

Stakeholder Impact

• Shareholders may experience minor dilution as these units vest and convert into common stock.

Next Steps

• Vesting of 25% of the RSU grant on April 2, 2027.

Key Dates

Keywords

PagerDuty, PD, CEO, Equity Incentive Plan, Restricted Stock Units, Insider Transaction