Form 4: Plexus Corp Executive Victor Tan Reports Stock Unit Grants

Regional President APAC, Victor Tan, reports the acquisition of restricted and performance stock units in Plexus Corp.

Summary

• Victor Tan, Regional President APAC of Plexus Corp, filed a Form 4 on February 5, 2025.
• The report details the grant of 3,060 Restricted Stock Units (RSUs) and 3,070 Performance Stock Units (PSUs) on February 3, 2025.
• The RSUs vest on February 3, 2028, and each represents a contingent right to receive one share of Plexus Corp common stock.
• The PSUs also represent a contingent right to receive one share of Plexus Corp common stock, with vesting dependent on the company's relative total shareholder return (TSR) compared to the S&P 400 Index and economic return (ER) goals over a three-year performance period.
• Tan directly owns 9,968 shares of Plexus Corp common stock.

Sentiment

Score: 7

Explanation: The document itself is neutral, simply reporting a transaction. The grant of stock units is generally viewed positively as it aligns management interests with shareholders.

Positives

• The grant of RSUs and PSUs aligns executive compensation with the company's long-term performance and shareholder value.

Future Outlook

The vesting of the PSUs is tied to the company's performance over a three-year period, incentivizing management to achieve specific TSR and economic return goals.

Industry Context

Stock grants are a common practice in publicly traded companies to incentivize executives and align their interests with those of shareholders. The use of TSR and economic return metrics is also a standard approach to performance-based compensation.

Comparison to Industry Standards

• Many companies in the electronics manufacturing services (EMS) industry, such as Jabil and Flex, utilize similar equity-based compensation plans for their executives.
• These plans often include a mix of time-based vesting (RSUs) and performance-based vesting (PSUs) tied to metrics like revenue growth, profitability, and shareholder return.
• The specific metrics and vesting schedules vary depending on the company's strategic priorities and industry benchmarks.

Stakeholder Impact

• Shareholders: The stock grants align executive interests with shareholder value creation.
• Employees: The grants may have a positive impact on employee morale as they demonstrate the company's commitment to rewarding performance.

Key Dates