Form 4: Teradyne CFO Michelle Turner Receives Equity Awards

Teradyne CFO Michelle Turner received equity grants.

Summary

• Michelle L. Turner, Chief Financial Officer of Teradyne, Inc. (TER), was granted equity awards on November 3, 2025.
• The awards include 11,144 Restricted Stock Units (RSUs) at a price of $0 per unit.
• Each RSU represents the right to receive one share of Common Stock.
• The RSUs will vest in four equal annual installments, beginning on November 3, 2026.
• Additionally, 9,156 stock options were granted with an exercise price of $183.07 per share.
• These stock options vest 25% per year over four years, also beginning on November 3, 2026, the first anniversary of the grant.
• The stock options have an expiration date of November 3, 2032.
• Following these transactions, Michelle L. Turner beneficially owns 11,260 shares of Common Stock and 9,156 stock options.

Sentiment

Score: 7

Explanation: The grant of equity awards to a key executive is generally a positive signal for corporate governance and management alignment with shareholder interests, promoting long-term commitment and performance. It is a routine compensation event rather than a direct indicator of immediate operational or financial performance.

Positives

• The grant of equity awards aligns the Chief Financial Officer's interests with those of shareholders, incentivizing long-term company performance.
• Equity compensation serves as a key retention tool for executive talent.
• The awards are part of an established compensation plan (2006 Equity and Cash Compensation Incentive Plan), indicating structured corporate governance.

Negatives

• The awards are subject to a multi-year vesting schedule, meaning the full benefit is not immediately realized.
• The value of the awards is tied to the future stock performance of Teradyne, introducing market risk.

Risks

• The value of the restricted stock units and stock options is subject to the market price fluctuations of Teradyne's common stock.
• Unvested awards may be forfeited if the reporting person's employment with the issuer terminates prior to the vesting dates.

Future Outlook

The filing indicates a future outlook for the Chief Financial Officer's compensation, with equity awards vesting over the next four years starting November 3, 2026, and stock options expiring on November 3, 2032. No forward-looking statements regarding company performance or financial guidance are provided.

Industry Context

The grant of restricted stock units and stock options to a Chief Financial Officer is a standard practice in the technology and manufacturing sectors for executive compensation. It is designed to align executive incentives with long-term shareholder value creation and to retain key talent in a competitive market.

Comparison to Industry Standards

• This filing reports an individual executive's equity compensation grant. Without specific data on peer company executive compensation packages, a direct comparison to industry standards for the size and structure of these grants is not feasible based solely on this document.

Corporate Governance

Stakeholder Impact

• Shareholders: Potential positive impact due to increased alignment of executive incentives with long-term company performance and shareholder value.
• Employees (CFO): Direct positive impact through significant equity compensation, fostering retention and motivation.

Next Steps

• The Restricted Stock Units will vest in four equal annual installments beginning November 3, 2026.
• The stock options will vest 25% per year over four years, beginning November 3, 2026.

Key Dates

Recommendation

This Form 4 reports a routine equity grant to a key executive, which is a standard compensation practice. While it aligns management's interests with shareholders, it does not provide new information regarding the company's operational or financial performance that would warrant a change in investment recommendation. Investors should consider this as part of ongoing executive compensation disclosures.

Keywords

Teradyne, TER, Form 4, SEC filing, insider transaction, equity grant, RSU, restricted stock units, stock option, executive compensation, Michelle L. Turner, CFO