Form 4: Universal Display Corp CEO Steven Abramson Reports Stock Transactions

CEO Steven Abramson reports acquisition and disposal of Universal Display Corporation (OLED) stock due to vesting of restricted stock and performance units, as well as tax liability fulfillment.

Summary

• Steven Abramson, CEO of Universal Display Corporation, filed a Form 4 detailing changes in beneficial ownership of the company's stock.
• On February 16, 2025, 1,917 shares were disposed of to cover tax liabilities related to the vesting of 4,494 restricted stock units at a price of $142.5.
• On February 18, 2025, Abramson acquired 7,348 shares and 18,538 shares as performance units under the company's Long Term Incentive Plan as part of 2022 compensation, which vested due to the satisfaction of certain performance conditions certified by the Human Capital Committee.
• Also on February 18, 2025, 3,117 shares and 7,863 shares were withheld to satisfy tax liabilities related to the vesting of 7,348 and 18,538 restricted stock units respectively, at a price of $145.02.
• Additionally, on February 18, 2025, 13,778 units were granted under the Company's Long Term Incentive Plan as part of the Reporting Person's 2025 compensation and are subject to a time-based restriction, with one-third of the total unit amount vesting on each of February 18, 2026, 2027 and 2028.
• Following these transactions, Abramson directly owns 240,936 shares of common stock and indirectly owns 5,033 shares through a Grantor Retained Annuity Trust.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The vesting of performance units suggests the company is meeting its goals, and the grant of new units indicates continued confidence. However, the disposal of shares to cover tax liabilities is a routine event and doesn't significantly impact sentiment.

Positives

• The vesting of performance units indicates that the company met certain performance conditions set by the Human Capital Committee.
• The grant of additional units under the Long Term Incentive Plan suggests continued confidence in the company's future performance.

Future Outlook

The vesting schedule of the Long Term Incentive Plan units suggests a multi-year commitment and alignment of management's interests with the company's long-term performance.

Industry Context

Executive stock transactions are common and are closely watched by investors as they can provide insights into management's confidence in the company's prospects. The vesting of performance units suggests the company is meeting its goals, which is a positive signal.

Comparison to Industry Standards

• Executive compensation packages often include a mix of salary, stock options, restricted stock, and performance-based incentives.
• The structure of Universal Display Corporation's Long Term Incentive Plan, with vesting based on both performance and time, is a common practice among publicly traded companies to align executive compensation with shareholder value.
• Companies like Samsung Display and LG Display, which are major players in the OLED industry, also utilize similar compensation strategies for their executives.

Stakeholder Impact

• Shareholders may view the vesting of performance units positively, as it indicates the company is achieving its goals.
• Employees may be motivated by the company's performance and the potential for future vesting of incentive units.

Key Dates

Keywords

Universal Display Corporation, OLED, Steven Abramson, Form 4, Beneficial Ownership, Stock Transactions, Restricted Stock, Performance Units, Long Term Incentive Plan, Tax Liability