Form 4: Penumbra Inc. Executive Lambert Shiu Reports Changes in Beneficial Ownership

Chief Accounting Officer Lambert Shiu reports acquisition of restricted stock units and shares withheld for tax obligations related to vesting RSUs.

Summary

• On March 15, 2024, Lambert Shiu, Chief Accounting Officer of Penumbra Inc., reported changes in beneficial ownership.
• Shiu acquired 1,670 restricted stock units (RSUs) under the company's Amended and Restated 2014 Equity Incentive Plan.
• These RSUs vest in equal annual installments, starting March 15, 2024, contingent upon continued service.
• 232 shares were withheld by Penumbra Inc. to cover tax obligations related to the vesting of RSUs at a price of $222.15.
• Shiu directly owns 20,307 shares of common stock after the reported transactions.
• Shiu also indirectly owns 300 shares through a spouse's IRA.

Sentiment

Score: 6

Explanation: Neutral sentiment as it's a routine disclosure of stock transactions. The RSU grant is a positive sign of incentivizing management, but the tax withholding is a neutral event.

Positives

• The grant of RSUs to a key executive aligns their interests with the company's long-term performance.

Future Outlook

The RSUs will continue to vest annually, subject to continued service by the Reporting Person.

Industry Context

Form 4 filings are standard practice for reporting changes in beneficial ownership by company insiders, providing transparency to investors.

Comparison to Industry Standards

• Equity compensation is a common practice in the medical device industry to incentivize and retain key personnel.
• Companies like Medtronic, Boston Scientific, and Abbott also utilize RSUs and stock options as part of their compensation packages.
• The vesting schedule of the RSUs (1/4 annually) is a typical vesting arrangement.

Stakeholder Impact

• The RSU grant aligns management's interests with shareholders, potentially driving long-term value creation.

Key Dates