Form 4: Teradyne Director Peter Herweck Reports Acquisition of Deferred Stock Units

Teradyne, Inc. Director Peter Herweck reported the acquisition of 15 common shares through deferred stock units, increasing his total beneficial ownership to 14,697 shares.

Summary

• Peter Herweck, a Director of Teradyne, Inc. (TER), acquired 15 shares of Common Stock on June 13, 2025.
• These shares were acquired as Deferred Stock Units (DSUs) in accordance with his election to receive dividends paid on DSUs in the form of additional DSUs instead of cash.
• This acquisition is exempt under Exchange Act Rule 16b-3(d).
• Following this transaction, Mr. Herweck beneficially owns 14,697 shares of Common Stock.
• DSUs are settled one-for-one in Common Stock generally within ninety days of the date as of which a non-employee director no longer serves in such capacity.

Sentiment

Score: 7

Explanation: The filing is a routine insider transaction indicating a director's continued equity accumulation through a standard compensation mechanism, which is generally viewed positively as it aligns interests with shareholders. There are no negative implications.

Positives

• The acquisition of additional shares by a director, even through DSU dividends, indicates continued alignment of interests with shareholders.
• The transaction is exempt under Exchange Act Rule 16b-3(d), indicating a routine, pre-planned, or non-discretionary acquisition.

Future Outlook

The document indicates that Deferred Stock Units (DSUs) are settled one-for-one in Common Stock generally within ninety days of a non-employee director no longer serving in such capacity, providing a future conversion mechanism for these equity awards.

Industry Context

This Form 4 filing is a routine disclosure of insider stock ownership changes, common across all publicly traded companies. It reflects standard equity compensation practices for directors, where dividends on deferred stock units are reinvested into additional units, aligning director interests with long-term shareholder value.

Comparison to Industry Standards

• The practice of issuing Deferred Stock Units (DSUs) to non-employee directors and allowing for dividend reinvestment into additional DSUs is a common and standard compensation practice among publicly traded companies, particularly in the technology and industrial automation sectors where Teradyne operates.
• This aligns director incentives with long-term company performance and shareholder returns, similar to practices observed at peers like Keysight Technologies (KEYS) or Fortive Corporation (FTV) which also utilize equity-based compensation for their boards.

Stakeholder Impact

• Shareholders: The acquisition of additional shares by a director through a DSU dividend reinvestment plan aligns the director's interests more closely with long-term shareholder value.

Next Steps

• Deferred Stock Units (DSUs) acquired will be settled one-for-one in Common Stock generally within ninety days of Peter Herweck no longer serving as a non-employee director.

Key Dates

Keywords

Teradyne, TER, Form 4, Insider Trading, Beneficial Ownership, Deferred Stock Units, Director, Equity Compensation, SEC Filing