Form 4: Synopsys CFO Awarded 7,554 Restricted Stock Units

Synopsys Inc.'s CFO, Shelagh Glaser, received a grant of 7,554 restricted stock units under the company's 2006 Employee Equity Incentive Plan.

Summary

• Shelagh Glaser, Chief Financial Officer (CFO) of Synopsys Inc. (SNPS), was granted 7,554 restricted stock units (RSUs).
• The grant was approved by the Compensation Committee of the Board of Directors under the Synopsys, Inc. 2006 Employee Equity Incentive Plan.
• The transaction date for this acquisition of derivative securities was December 16, 2025.
• The RSUs have a grant price of $0.0 per unit, which is typical for such awards.
• Vesting for these units begins on June 15, 2026, with one-sixth (1/6) of the units vesting on that date.
• The remaining units will vest in five equal semi-annual installments thereafter, contingent upon continued service through each vesting date.
• The expiration date for these restricted stock units is December 15, 2028.
• Following this transaction, Shelagh Glaser beneficially owns 7,554 derivative securities (RSUs) directly.

Sentiment

Score: 7

Explanation: The grant of restricted stock units to the CFO is a positive sign for executive retention and aligns management's interests with shareholder value through equity ownership, reflecting a stable and incentivized leadership.

Positives

• The grant of restricted stock units aligns the CFO's financial interests with those of shareholders, promoting long-term value creation.
• This type of equity compensation is a standard practice for retaining key executives and incentivizing continued performance and service.

Future Outlook

The vesting schedule for the restricted stock units extends through December 2028, indicating an expectation of continued service from the CFO and a long-term incentive structure.

Industry Context

The grant of restricted stock units to a Chief Financial Officer is a common and widely accepted practice in the technology and software industry for executive compensation. It serves to align the interests of key management personnel with the long-term performance of the company and shareholder value, consistent with industry standards for executive retention and motivation.

Comparison to Industry Standards

• The RSU grant to the CFO is a standard component of executive compensation packages across the technology sector, comparable to practices at companies like Adobe, Cadence Design Systems, and Ansys, which frequently use equity awards to incentivize and retain top talent.
• The vesting schedule, with a multi-year staggered approach, is typical for ensuring long-term commitment and performance, mirroring structures seen in similar roles at peer companies.

Corporate Governance

Related Party Transactions

• The grant of restricted stock units to the CFO is a transaction between the company and a key executive, which is a form of related party transaction, executed as part of standard executive compensation.

Stakeholder Impact

• Shareholders: Interests are aligned with the CFO through equity ownership, potentially leading to better long-term performance.
• Employees (CFO): Receives significant equity compensation, incentivizing continued dedication and performance.

Next Steps

• Continued service by the CFO through the vesting dates to realize the equity awards.
• Issuance of common stock upon the vesting of the restricted stock units.

Key Dates

Recommendation

This Form 4 reports a routine grant of restricted stock units to a key executive, which is a standard component of executive compensation. It does not provide new information that would fundamentally alter the investment thesis for Synopsys Inc., hence a 'hold' recommendation is appropriate based solely on this filing.

Keywords

Synopsys, SNPS, Restricted Stock Units, RSU, Equity Incentive Plan, CFO, Shelagh Glaser, Executive Compensation, SEC Form 4, Insider Transaction