Form 4: Teradyne CEO Gregory Smith Acquires Shares Through Vesting, Sells to Cover Taxes

Teradyne's CEO, Gregory Smith, acquired 4,014 shares through vesting of performance-based restricted stock units and sold 2,278 shares to cover tax obligations.

Summary

• Gregory Smith, the President and CEO of Teradyne, Inc., acquired 4,014 shares of common stock on January 28, 2025, through the vesting of performance-based restricted stock units (PRSUs).
• These PRSUs were initially granted on January 28, 2022, and each represents the right to receive one share of common stock.
• On the same day, January 28, 2025, 1,894 shares were withheld by Teradyne to cover Mr. Smith's tax obligations related to the vesting of restricted stock units and PRSUs.
• An additional 384 shares were withheld on January 29, 2025, for tax obligations related to the vesting of restricted stock units.
• Following these transactions, Mr. Smith's direct ownership of Teradyne common stock decreased from 77,033.2277 to 74,755.2277 shares.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to executive compensation. The vesting of shares is positive, but the sale of shares for tax purposes is neutral. Overall, the sentiment is slightly positive.

Positives

• The vesting of performance-based restricted stock units indicates that performance targets were met, which is a positive sign for the company's performance.
• The acquisition of 4,014 shares increases the CEO's stake in the company, aligning his interests with those of shareholders.

Negatives

• The sale of 2,278 shares, while for tax purposes, reduces the CEO's direct shareholding in the company.

Risks

• There are no specific risks mentioned in this document, but the sale of shares by an executive could be perceived negatively by some investors.

Industry Context

This is a routine transaction related to executive compensation and is common in publicly traded companies. It reflects the vesting of previously granted equity awards and the subsequent sale of shares to cover tax liabilities.

Comparison to Industry Standards

• The vesting of restricted stock units and performance-based awards is a standard practice in executive compensation across the technology industry.
• Companies like Applied Materials, Lam Research, and ASML also use similar equity-based compensation plans for their executives.
• The tax withholding process is also a standard procedure to ensure compliance with tax regulations.

Stakeholder Impact

• The vesting of shares and subsequent sale for tax obligations has a minor impact on shareholders, as it slightly reduces the CEO's direct shareholding.
• The transaction does not have a significant impact on employees, customers, suppliers, or creditors.

Key Dates

Keywords

Teradyne, Gregory Smith, stock vesting, restricted stock units, performance-based, tax withholding, insider trading, share ownership