[Form 4] Cognizant Technology Solutions Insider Trading Activity
Abdalla Zein, a director of Cognizant Technology Solutions Corp. (CTSH), reported receipt of 12.3818 restricted stock units (RSUs) on 08/26/2025. These RSUs were issued at no cash price as dividend equivalent rights credited on previously outstanding RSUs and increase his total beneficial ownership to 2,875.3818 shares of Class A common stock. The newly credited RSUs will vest in full on June 3, 2026. The Form 4 filing was signed on behalf of Mr. Zein by a power of attorney and shows the transaction was an acquisition (code A) recorded by the company.
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Insights
TL;DR: Routine insider crediting of dividend-equivalent RSUs increases a director's holdings modestly, with standard vesting terms.
The filing documents a non-cash issuance of 12.3818 restricted stock units to a board director under existing award terms, reflecting dividend-equivalent accruals rather than a new grant. Such credits are customary and align executive/director compensation practices that preserve equity economics for prior awards. The vesting date of June 3, 2026 is disclosed, which is material to timing of potential share issuance but does not indicate accelerated vesting or change in control provisions. From a governance perspective, this is a routine disclosure with limited immediate market impact.
TL;DR: The transaction is a small, non-cash acquisition of RSUs that modestly raises a director's beneficial ownership; no cash flow or dilution now.
The Form 4 shows acquisition code A for 12.3818 RSUs at $0, increasing total beneficial ownership to 2,875.3818 shares. Because these are dividend-equivalent RSUs tied to previously granted awards, they represent an adjustment to outstanding long-term compensation rather than a separate cash-paid transaction. Vesting is scheduled for 06/03/2026, so any share issuance and potential dilution will occur then if vesting conditions are met. This is a routine insider disclosure with negligible immediate valuation impact.