[Form 4] Cognizant Technology Solutions Insider Trading Activity
Archana Deskus, a director of Cognizant Technology Solutions Corporation (CTSH), received restricted stock units as dividend equivalents on previously outstanding awards. The Form 4 reports a transaction dated 08/26/2025 that added 12.3818 restricted stock units that are tied to Class A Common Stock and result in 2,875.3818 shares beneficially owned following the transaction. The units carry a $0 acquisition price and are scheduled to vest in full on June 3, 2026. The filing was signed on behalf of Ms. Deskus by power of attorney on 08/28/2025. The disclosure states these RSUs reflect dividend equivalent rights and that each unit represents a contingent right to one share.
- Receipt of RSUs as dividend equivalents increases alignment between director and shareholders
- Beneficial ownership reported clearly: 2,875.3818 shares following the transaction
- Vesting date disclosed: units vest in full on June 3, 2026, providing transparency on timing
- None.
Insights
TL;DR: Routine insider receipt of dividend-equivalent RSUs increases beneficial ownership modestly; not a material corporate event.
The Form 4 documents a non-cash grant of restricted stock units to a director arising from accrued dividend equivalents on existing awards. The reported increment—12.3818 RSUs recorded on 08/26/2025 and bringing beneficial ownership to 2,875.3818 shares—is administrative in nature and carries no purchase price. Vesting is scheduled for 06/03/2026, so economic and voting rights remain contingent until vesting. For most investors, this represents routine compensation-related activity rather than a signal of material corporate change.
TL;DR: Compensation mechanics disclosed; filing meets Section 16 reporting for a director and shows standard dividend-equivalent treatment.
The disclosure clarifies that the award reflects dividend-equivalent rights credited to previously granted restricted stock units and that each unit converts to one share upon vesting. The use of a power of attorney for signature is common for timely Section 16 filings. The specified vesting date of 06/03/2026 and the $0 reported price are consistent with equity compensation accounting rather than an open-market purchase or sale. This is a routine governance disclosure with limited immediate governance or control implications.