Form 4: Teradyne CEO Smith Receives Significant Equity Grant

Teradyne's President and CEO, Gregory Stephen Smith, was granted 13,380 restricted stock units and 11,810 stock options.

Summary

• Gregory Stephen Smith, Teradyne, Inc.'s President and CEO, received a grant of 13,380 restricted stock units (RSUs) on February 4, 2026.
• Each RSU represents the right to receive one share of Common Stock, with vesting occurring in four equal annual installments starting on February 4, 2027.
• Following this transaction, Smith beneficially owns 128,469.5729 shares of Common Stock.
• Additionally, Smith was granted 11,810 stock options on February 4, 2026, with an exercise price of $269.07 per share.
• These stock options will vest 25% per year over four years, beginning on February 4, 2027, and have an expiration date of February 4, 2033.
• After this transaction, Smith beneficially owns 11,810 derivative securities (stock options).

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a neutral to slightly positive event. It represents a standard executive compensation practice that aligns management incentives with shareholder value, without indicating any immediate operational or financial changes.

Positives

• The grant of restricted stock units and stock options aligns the executive's long-term interests with those of the shareholders, incentivizing performance and retention.

Future Outlook

The equity grants are structured with multi-year vesting schedules, indicating a long-term incentive for the President and CEO, Gregory Stephen Smith, to remain with the company and contribute to its future performance through at least February 2030 for the full vesting of the options and RSUs.

Industry Context

StockSavvy.ai notes that the grant of restricted stock units and stock options is a standard and widely adopted practice in the technology and semiconductor industry for executive compensation. This approach is designed to align the interests of senior management with those of shareholders by tying a significant portion of their compensation to the company's stock performance and long-term value creation.

Corporate Governance

Stakeholder Impact

• Shareholders: The equity grants are intended to align the CEO's financial interests with long-term shareholder value creation, potentially leading to improved company performance.
• Employees: While specific to the CEO, such compensation structures can set a precedent or reflect the broader compensation philosophy within the company.

Next Steps

• The restricted stock units will vest in four equal annual installments beginning on February 4, 2027.
• The stock options will vest 25% per year over four years, beginning on February 4, 2027.

Key Dates

Recommendation

This Form 4 reports a standard equity grant to the CEO, which is a routine compensation event and does not provide new fundamental information to alter an investment thesis. It aligns management's interests with shareholders but doesn't signal a significant change in company prospects that would warrant a 'buy' or 'sell' recommendation based solely on this filing.

Keywords

Teradyne, TER, Form 4, Insider Transaction, Equity Grant, Restricted Stock Units, Stock Options, Executive Compensation, Gregory Stephen Smith