Form 4: Teradyne Director Henry Chisholm Reports Acquisition of Restricted Stock Units

Teradyne, Inc. Director Henry Andrew Chisholm reported the acquisition of 2,132 shares of common stock in the form of restricted stock units, granted under the company's 2006 Equity and Cash Compensation Incentive Plan.

Summary

• Henry Andrew Chisholm, a Director of Teradyne, Inc. (TER), acquired 2,132 shares of common stock.
• The acquisition was in the form of Restricted Stock Units (RSUs) granted on July 1, 2025.
• Each RSU represents the right to receive one share of Common Stock.
• The RSUs were granted under the Issuer's 2006 Equity and Cash Compensation Incentive Plan.
• The RSUs are time-based and will vest in full on the earlier of the date of Teradyne's 2026 Annual Meeting of Shareholders or the last Thursday in May 2026.
• Following this transaction, Henry Andrew Chisholm beneficially owns 2,132 shares directly.

Sentiment

Score: 6

Explanation: Neutral to slightly positive. The filing reports a routine equity grant to a director, which is a standard compensation practice aligning interests. It does not contain any negative news or significant positive surprises beyond the ordinary course of business.

Positives

• Grant of Restricted Stock Units to a director aligns management's interests with shareholders.
• The grant is part of an established compensation plan (2006 Equity and Cash Compensation Incentive Plan).

Future Outlook

The 2,132 Restricted Stock Units granted to Director Henry Andrew Chisholm are time-based and are scheduled to vest in full on the earlier of the date of Teradyne's 2026 Annual Meeting of Shareholders or the last Thursday in May 2026.

Industry Context

Director equity grants, such as Restricted Stock Units, are a common practice across various industries, including the technology and semiconductor equipment sectors where Teradyne operates. These grants are typically used to align the interests of directors and executives with those of shareholders and to incentivize long-term performance and retention.

Comparison to Industry Standards

• The grant of Restricted Stock Units (RSUs) to directors is a standard practice in corporate governance, aligning director incentives with shareholder value.
• Companies like Applied Materials (AMAT), KLA Corporation (KLAC), and Lam Research (LRCX), which are peers in the semiconductor equipment industry, also frequently utilize RSU grants as part of their executive and director compensation packages.
• The specific number of units (2,132) and the vesting schedule (time-based, vesting by May 2026 or 2026 Annual Meeting) are typical for director compensation, reflecting a long-term retention and performance alignment strategy.

Corporate Governance

Related Party Transactions

• The grant of Restricted Stock Units to a director is a related party transaction, as it involves compensation to an insider.

Stakeholder Impact

• Shareholders: Potential minor dilution upon vesting of RSUs, but also improved alignment of director's interests with shareholder value.
• Director (Henry Andrew Chisholm): Increased beneficial ownership and future equity compensation.

Next Steps

• Vesting of the 2,132 Restricted Stock Units on the earlier of the 2026 Annual Meeting of Shareholders or the last Thursday in May 2026.

Key Dates

Keywords

Teradyne, TER, Form 4, SEC filing, Restricted Stock Units, RSU, equity compensation, director compensation, beneficial ownership, insider transaction