Form 4: SolarWinds Director Michael Widmann Receives Equity Grant

Michael Widmann, a director at SolarWinds Corp and an executive at Silver Lake Group, was granted 17,573 restricted stock units (RSUs) under the company's non-employee director compensation policy.

Summary

• Michael Widmann, a director of SolarWinds Corp, received 17,573 restricted stock units (RSUs) on May 23, 2024.
• These RSUs were granted as part of the annual equity grant under the Issuer's non-employee director compensation policy.
• The RSUs vest 100% on the one-year anniversary of the grant date, contingent upon Mr. Widmann's continued service as a director.
• Mr. Widmann is an executive of Silver Lake Group, L.L.C., and the securities are held for the benefit of Silver Lake Technology Management, L.L.C., and/or its affiliates or certain of the funds they manage.
• Proceeds from the sale of these securities are expected to be remitted to Silver Lake and/or its limited partners according to Silver Lake's policies.
• Mr. Widmann disclaims beneficial ownership of these securities.

Sentiment

Score: 7

Explanation: The document is a routine filing related to director compensation, which is generally viewed neutrally. The grant of RSUs is a positive sign of aligning director interests with company performance.

Positives

• The equity grant aligns the director's interests with the company's performance over the vesting period.

Risks

• The director may not continue service through the vesting date, resulting in forfeiture of the RSUs.

Future Outlook

The director's continued service is required for the RSUs to vest, aligning their interests with the company's future performance.

Management Comments

• Mr. Widmann disclaims beneficial ownership of these securities and the inclusion of the securities in this report shall not be deemed an admission of beneficial ownership for purposes of Section 16 or any other purpose.

Industry Context

Equity grants to non-employee directors are a common practice to align their interests with the long-term success of the company and its shareholders.

Comparison to Industry Standards

• Director compensation packages, including equity grants, vary significantly across the technology industry depending on company size, performance, and board structure.
• Comparing SolarWinds' director compensation to companies like Palo Alto Networks or CrowdStrike would provide a better understanding of whether the grant is in line with industry norms.

Stakeholder Impact

• Shareholders may view the equity grant positively as it aligns the director's interests with the company's long-term performance.
• The impact on employees is likely neutral, as this is a standard director compensation practice.

Key Dates