Form 4: Teradata CEO McMillan Boosts Stake with RSU Vesting

Teradata's President and CEO, Stephen McMillan, acquired performance-based restricted share units and had shares withheld for tax obligations.

Summary

• Stephen McMillan, President and CEO of Teradata Corp, acquired a total of 246,532 shares of common stock through performance-based restricted share unit awards.
• The acquisitions occurred on February 11, 2026, with a transaction price of $0 per share, indicating vesting of awards.
• Concurrently, McMillan disposed of a total of 92,467 shares of common stock at a price of $37.88 per share.
• These dispositions were shares withheld by the company to satisfy tax obligations upon the vesting of the performance-based restricted share units.
• Following these transactions, McMillan's direct beneficial ownership of Teradata common stock increased to 713,190 shares.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive event. While some shares were sold for taxes, the underlying acquisition of performance-based units indicates the achievement of company goals and an increase in the CEO's overall stake, aligning his interests with shareholders.

Positives

• Stephen McMillan, President and CEO, acquired a significant number of shares (246,532) through performance-based restricted share unit awards, indicating the achievement of performance goals by the issuer.
• The increase in beneficial ownership to 713,190 shares demonstrates continued alignment of management's interests with shareholders.

Negatives

• A total of 92,467 shares were disposed of to cover tax obligations, representing a reduction in the net shares received from the vesting event.

Future Outlook

This filing does not contain forward-looking statements or guidance regarding the company's future performance or outlook.

Industry Context

StockSavvy.ai notes that insider transactions, particularly those involving the vesting of equity awards and subsequent tax-related sales, are common occurrences in the technology sector. These events typically reflect pre-planned compensation structures rather than discretionary trading based on new market insights. The increase in net beneficial ownership for a CEO like McMillan is generally viewed positively as it signals continued commitment to the company's long-term success.

Comparison to Industry Standards

• The vesting of performance-based restricted share units is a standard component of executive compensation packages across the technology industry, similar to practices at companies like Oracle, IBM, and Microsoft, where executive incentives are tied to company performance metrics.
• The practice of withholding shares to cover tax obligations upon vesting is also a common and standard procedure for equity compensation in the U.S., ensuring compliance with tax laws for executives at publicly traded companies.

Related Party Transactions

• The acquisition of performance-based restricted share units by Stephen McMillan from Teradata Corp is a related party transaction as it involves an executive and the company.

Stakeholder Impact

• Shareholders: The increase in the CEO's beneficial ownership aligns his interests more closely with shareholders, potentially signaling confidence in future performance.
• Employees: The vesting of performance-based awards can serve as a positive signal regarding the company's achievement of internal metrics, potentially boosting morale.

Key Dates

Recommendation

This Form 4 filing details routine insider transactions related to executive compensation (vesting of RSUs and tax withholding). While the increase in the CEO's beneficial ownership is a positive signal of alignment, it does not present new fundamental information about the company's operational or financial performance that would warrant a change in investment recommendation. Therefore, a 'hold' recommendation is appropriate, maintaining current positions based on broader company fundamentals.

Keywords

Teradata, TDC, Stephen McMillan, CEO, Insider Trading, Form 4, Restricted Stock Units, RSU, Stock Award, Executive Compensation, Share Ownership