Form 4: Universal Display SVP & CLO Receives Equity Grant

Universal Display's SVP & CLO, Mauro Premutico, received a new restricted stock unit grant and had shares withheld for tax obligations related to a prior vesting.

Summary

• SVP & CLO Mauro Premutico was granted 9,062 restricted stock units (RSUs) on February 17, 2026, as part of his 2026 compensation.
• These RSUs will vest in three equal installments on February 17, 2027, 2028, and 2029.
• On February 18, 2026, 1,412 shares of common stock were withheld to cover tax liabilities associated with the vesting of 2,480 previously granted restricted shares.
• The shares withheld for tax purposes were valued at $119.92 per share.
• Following these transactions, Mauro Premutico beneficially owns 43,491 shares of Universal Display Corporation common stock.
• Beneficial ownership also includes 16 shares acquired through the Employee Stock Purchase Plan on September 30, 2025.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a routine executive compensation event, with the grant of new restricted stock units being a positive for executive alignment, balanced by the expected tax-related share disposition.

Positives

• The grant of 9,062 restricted stock units to a key executive aligns management's interests with long-term shareholder value and retention.

Negatives

• A portion of previously granted restricted stock (1,412 shares) was sold to cover tax liabilities, resulting in a reduction of directly held shares.

Future Outlook

The vesting schedule for the newly granted restricted stock units extends through February 2029, indicating a long-term incentive structure for the executive.

Industry Context

StockSavvy.ai notes that executive equity grants and tax-related share withholdings are standard practices in publicly traded companies, particularly in the technology and materials sectors like OLED, to align executive incentives with long-term company performance and manage tax obligations upon vesting.

Comparison to Industry Standards

• Executive compensation packages often include restricted stock units (RSUs) with multi-year vesting schedules, similar to this grant, to promote retention and long-term performance alignment. For example, companies like Apple or Google frequently use similar RSU structures for their senior executives.
• The tax withholding upon vesting is also a common mechanism, seen across various industries, to cover statutory tax obligations without requiring the executive to sell shares on the open market.

Related Party Transactions

• The transactions involve an executive (Mauro Premutico) and the company (Universal Display Corporation), which are considered related party dealings in the context of executive compensation and equity grants.

Stakeholder Impact

• Shareholders: The grant of restricted stock units aligns the executive's long-term interests with shareholder value. The tax-related share disposition is a routine event and does not significantly impact the overall share structure.
• Employees: The filing details executive compensation, which may set a precedent or reflect the company's overall compensation philosophy.

Next Steps

• One-third of the 9,062 restricted stock units will vest on February 17, 2027.
• Another one-third of the 9,062 restricted stock units will vest on February 17, 2028.
• The final one-third of the 9,062 restricted stock units will vest on February 17, 2029.

Key Dates

Recommendation

This Form 4 details standard executive compensation activities, including a restricted stock unit grant and tax-related share withholding. It does not provide new information regarding the company's operational performance, financial health, or strategic direction that would warrant a change in investment recommendation. Therefore, a "hold" recommendation is appropriate as it reflects no new material information to alter an existing investment thesis.

Keywords

Universal Display, OLED, Mauro Premutico, Form 4, insider transaction, restricted stock units, RSU, executive compensation, stock grant, tax withholding