Form 4: Teradyne CFO Sells Shares After Vesting of Performance-Based Stock Units
SEC Form 4
Teradyne's CFO, Sanjay Mehta, sold shares to cover tax obligations after performance-based restricted stock units vested, and also sold shares under a pre-arranged 10b5-1 trading plan.
Summary
- Sanjay Mehta, the VP and Chief Financial Officer of Teradyne, Inc., engaged in several transactions involving the company's common stock.
- On January 28, 2025, 6,690 performance-based restricted stock units (PRSUs) vested, which were granted on January 28, 2022.
- Also on January 28, 2025, 2,974 shares were withheld by Teradyne to cover tax obligations related to the vesting of restricted stock units and PRSUs.
- On January 29, 2025, an additional 576 shares were withheld for tax obligations related to the vesting of restricted stock units.
- Finally, on January 29, 2025, 5,338 shares were sold at a price of $122.90 per share under a pre-arranged trading plan adopted on May 20, 2024.
Sentiment
Score: 5
Explanation: The document reflects routine transactions related to executive compensation and pre-planned sales, with no indication of positive or negative sentiment.
Risks
- The sale of shares by a high-ranking executive could be perceived negatively by the market, although the sales were partly to cover tax obligations and under a pre-arranged trading plan.
Industry Context
Executive stock transactions are a common occurrence in publicly traded companies, often tied to compensation plans and tax obligations. The use of 10b5-1 plans is a standard practice to avoid accusations of insider trading.
Comparison to Industry Standards
- The vesting of restricted stock units and subsequent tax withholding is a standard practice across publicly traded companies.
- The use of a 10b5-1 trading plan is a common method for executives to sell shares without being accused of insider trading, similar to practices at companies like Texas Instruments and Analog Devices.
Stakeholder Impact
- The sale of shares by the CFO could have a minor impact on shareholder sentiment, but the transactions are largely routine and expected.
Key Dates
| Date | Description |
|---|---|
| 01/28/2022 | Date the performance-based restricted stock units (PRSUs) were granted. |
| 05/20/2024 | Date the sales plan was adopted by the Reporting Person. |
| 01/28/2025 | Date of vesting of PRSUs and tax withholding of shares. |
| 01/29/2025 | Date of additional tax withholding and sale of shares. |
| 01/30/2025 | Date the Form 4 was signed. |
Keywords
Teradyne, Sanjay Mehta, stock sale, insider trading, Form 4, restricted stock units, performance-based stock units, tax withholding, 10b5-1 plan
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