Form 4: Teradyne Director Receives Deferred Stock Units as Dividend

Director Ernest E. Maddock receives deferred stock units (DSUs) from Teradyne, Inc. as a dividend, increasing his holdings to 6,606 DSUs.

Summary

• On June 14, 2024, Ernest E. Maddock, a director of Teradyne, Inc., acquired 2 deferred stock units (DSUs) as a dividend.
• These DSUs were issued in accordance with his election to receive dividends paid on DSUs in the form of additional DSUs instead of cash.
• The acquisition is exempt under Exchange Act Rule 16b-3(d).
• Each DSU is settled one-for-one in Common Stock, generally within ninety days of the date a non-employee director no longer serves in that capacity.
• Following the transaction, Maddock's total holdings increased to 6,606 DSUs.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, indicating stability and alignment of interests. It's a neutral to slightly positive event.

Positives

• The acquisition of DSUs as a dividend reflects a continued investment in the company by the director.
• The use of DSUs allows for a tax-efficient way to compensate non-employee directors.

Future Outlook

The DSUs will be settled in Common Stock generally within ninety days of the date as of which a non-employee director no longer serves in such capacity.

Industry Context

This is a standard practice for compensating board members, aligning their interests with those of shareholders through equity-based compensation.

Comparison to Industry Standards

• Granting deferred stock units (DSUs) to board members is a common practice among publicly traded companies, particularly in the technology sector.
• Companies like Texas Instruments and Analog Devices also use equity-based compensation, including DSUs, to align director interests with shareholder value.
• The specific number of DSUs granted and the terms of vesting and settlement can vary based on company size, performance, and compensation policies.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders by aligning director interests with long-term company performance.

Key Dates