Form 4: Synopsys CEO Ghazi Granted 19,856 Restricted Stock Units

Synopsys, Inc. President and CEO Sassine Ghazi was granted 19,856 restricted stock units under the company's 2006 Employee Equity Incentive Plan.

Summary

• Sassine Ghazi, President and CEO of Synopsys Inc. (SNPS), was granted 19,856 Restricted Stock Units (RSUs).
• The transaction date for this grant was December 16, 2025.
• The RSUs were granted under the Synopsys, Inc. 2006 Employee Equity Incentive Plan.
• The grant price for these RSUs was $0.0.
• One-sixth (1/6) of the units will vest on June 15, 2026, followed by five equal semi-annual installments.
• Vesting is contingent upon continued service through each vesting date.
• The expiration date for these Restricted Stock Units is December 15, 2028.
• Following this transaction, Sassine Ghazi beneficially owns 19,856 derivative securities directly.

Sentiment

Score: 7

Explanation: The grant of restricted stock units to the CEO is a positive for aligning executive incentives with shareholder value, but it is a routine compensation event rather than a significant operational or financial announcement that would drastically alter the company's outlook.

Positives

• The grant of restricted stock units to the President and CEO aligns management's long-term interests with those of shareholders, incentivizing sustained performance.
• Equity-based compensation is a standard practice that helps attract and retain top executive talent in competitive industries.

Future Outlook

The filing details a vesting schedule for the granted restricted stock units, with the first tranche vesting on June 15, 2026, and subsequent semi-annual installments, subject to continued service. This indicates a long-term incentive structure for the CEO.

Management Comments

• The Compensation Committee of the Board of Directors approved a restricted stock unit grant under the Synopsys, Inc. 2006 Employee Equity Incentive Plan.

Industry Context

The grant of restricted stock units to a top executive is a common practice in the technology industry and publicly traded companies. It serves as a key component of executive compensation packages, designed to align the interests of management with those of shareholders by tying a portion of compensation to the company's stock performance over time.

Comparison to Industry Standards

• The use of Restricted Stock Units (RSUs) as a form of executive compensation is a standard practice across the technology sector and global public companies, comparable to compensation structures at peers like Cadence Design Systems or NVIDIA.
• The vesting schedule, typically over several years and contingent on continued service, is consistent with industry benchmarks for long-term incentive plans, aiming to retain executives and encourage sustained performance.
• The grant of RSUs at a $0.0 price is standard for such awards, as they represent a right to receive shares upon vesting, rather than an option to purchase.

Corporate Governance

Related Party Transactions

• The grant of 19,856 restricted stock units to Sassine Ghazi, the President and CEO, constitutes a related party transaction as it involves compensation to a key executive. This is a standard and disclosed form of executive compensation.

Stakeholder Impact

• Shareholders: The RSU grant aims to align the CEO's long-term interests with shareholder value creation, potentially leading to improved company performance.
• Employees: This event is part of the company's overall compensation strategy, which may influence employee morale and retention by demonstrating commitment to executive incentives.

Next Steps

• The restricted stock units will vest in installments, with the first vesting on June 15, 2026, and subsequent semi-annual installments, subject to Sassine Ghazi's continued service.

Key Dates

Recommendation

This Form 4 filing details a routine restricted stock unit grant to the CEO, which is a standard executive compensation practice designed to align management's interests with shareholders. It does not provide new information regarding the company's operational performance, financial health, or strategic direction that would warrant a change in investment recommendation. Therefore, a 'hold' recommendation is appropriate as this event is neutral to the company's investment thesis.

Keywords

Synopsys, SNPS, Sassine Ghazi, Restricted Stock Units, RSU, Equity Grant, Executive Compensation, Insider Transaction, SEC Form 4