Microchip (NASDAQ: MCHP) CEO uses shares for taxes, holds 9.4M indirectly
Rhea-AI Filing Summary
MICROCHIP TECHNOLOGY INC (MCHP) reported that President and CEO Steve Sanghi exercised and vested equity awards tied to company performance. On August 17, 2026, restricted stock units for 7,020 shares and performance stock units for 6,157 shares converted into common stock at an exercise price of $80.26 per share. A total of 2,903 and 2,546 common shares were delivered or withheld to cover the exercise price or tax liabilities. Footnotes state that roughly 9.4 million shares are held indirectly through The Sanghi Trust and The Sanghi Family Limited Partnership.
Positive
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Negative
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Insider Trade Summary
Net Buyer: 7,728 shares
Net Buy
6 txns
Insider
Sanghi Steve
Role
President, CEO and Chair of Bd
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Restricted Stock Units F5 | 7,020 | $0.00 | $0.00 |
| Exercise | Performance Stock Units F6 | 6,157 | $0.00 | $0.00 |
| Exercise | Common Stock F1 | 7,020 | $80.26 | $563K |
| Exercise Price or Tax Liability | Common Stock F2 | 2,903 | $80.26 | $233K |
| Exercise | Common Stock F3 | 6,157 | $80.26 | $494K |
| Exercise Price or Tax Liability | Common Stock F4 | 2,546 | $80.26 | $204K |
Holdings After Transaction:
Restricted Stock Units — 0 shares (Direct);
Performance Stock Units — 0 shares (Direct);
Common Stock — 9,418,135 shares (Indirect, Shares held Indirectly, by Trust and by Family Limited Partnership.)
Footnotes (6)
- F1. Of the 9,417,427 shares held, 3,511,555 shares were held by The Sanghi Trust; and 5,905,872 shares were held by The Sanghi Family Limited Partnership.
- F2. Of the 9,414,524 shares held, 3,508,652 shares were held by The Sanghi Trust; and 5,905,872 shares were held by The Sanghi Family Limited Partnership.
- F3. Of the 9,420,681 shares held, 3,514,809 shares were held by The Sanghi Trust; and 5,905,872 shares were held by The Sanghi Family Limited Partnership.
- F4. Of the 9,418,135 shares held, 3,512,263 shares were held by The Sanghi Trust; and 5,905,872 shares were held by The Sanghi Family Limited Partnership.
- F5. The restricted stock units vested in full on August 17, 2026. Vested shares were delivered to the reporting person upon vest.
- F6. Each Performance Stock Unit (PSU) granted under the Microchip Technology Incorporated (Microchip) 2004 Equity Incentive Plan represents a contingent right to receive shares of Microchip common stock based on Microchip's cumulative non-GAAP operating margin over a period of 12 quarters ending June 30, 2025. The target number of PSU shares that may be earned is reported in the table above and is based on Microchip achieving a cumulative non-GAAP operating margin of 40.0% over the 12 quarter measurement period. The actual number of shares that may be earned can be higher or lower than the target depending on Microchip's non-GAAP operating margin over the measurement period. Earned PSUs vested on August 17, 2026. Vested shares were delivered to the reporting person upon vest.
Key Figures
RSUs converted: 7,020 shares
PSUs converted: 6,157 shares
Exercise price / share: $80.26 per share
+4 more
7 metrics
RSUs converted
7,020 shares
Restricted Stock Units converting into common stock on August 17, 2026
PSUs converted
6,157 shares
Performance Stock Units converting into common stock on August 17, 2026
Exercise price / share
$80.26 per share
Price for common stock received upon derivative exercises on August 17, 2026
Code F shares (first leg)
2,903 shares
Common shares delivered or withheld for exercise price or tax liability
Code F shares (second leg)
2,546 shares
Additional common shares delivered or withheld for exercise price or tax liability
Indirect holdings example total
9,417,427 shares
Held indirectly: 3,511,555 by The Sanghi Trust and 5,905,872 by The Sanghi Family Limited Partnership
Target cumulative non-GAAP operating margin
40.0%
Target over 12 quarters ending June 30, 2025 used to determine PSU shares earned
Key Terms
Restricted Stock Units, Performance Stock Units, non-GAAP operating margin, Family Limited Partnership
4 terms
Restricted Stock Units financial
"The restricted stock units vested in full on August 17, 2026."
Restricted stock units are a type of company reward where employees are promised shares of stock, but they only fully own these shares after meeting certain conditions, like staying with the company for a set time. They matter because they can become valuable assets and are often used to motivate employees to help the company succeed.
Performance Stock Units financial
"Each Performance Stock Unit (PSU) granted under the Microchip Technology Incorporated 2004 Equity Incentive Plan"
Performance stock units are a type of company award that grants employees shares of stock only if certain performance goals are met. They motivate employees to work toward specific company achievements, aligning their interests with those of shareholders. For investors, they can influence a company's future stock supply and reflect management’s confidence in reaching key targets.
non-GAAP operating margin financial
"based on Microchip's cumulative non-GAAP operating margin over a period of 12 quarters"
Non-GAAP operating margin is a way companies show how much profit they make from their main business activities, excluding certain expenses or income they consider unusual or non-recurring. It helps investors see how well the company is performing in its normal operations, without the effects of one-time costs or gains that might distort the picture.
Family Limited Partnership financial
"shares were held by The Sanghi Family Limited Partnership."
FAQ
What did MCHP CEO Steve Sanghi report in this Form 4 filing?
Steve Sanghi reported exercising and vesting equity awards in MICROCHIP TECHNOLOGY INC. Restricted stock units and performance stock units converted into common stock, with some shares delivered or withheld to cover the exercise price or tax liabilities associated with these awards.
How many restricted and performance stock units did Sanghi convert at MCHP?
Sanghi converted 7,020 restricted stock units and 6,157 performance stock units into MICROCHIP TECHNOLOGY INC common stock. Both sets of awards converted at an exercise price of $80.26 per share, according to the reported derivative and non-derivative transactions.
What performance metric governs Sanghi’s performance stock units at MCHP?
Each performance stock unit is tied to Microchip’s cumulative non-GAAP operating margin over 12 quarters ending June 30, 2025. The target PSU share number assumes a 40.0% cumulative non-GAAP operating margin, with actual shares earned higher or lower based on performance.
When did Sanghi’s restricted and performance stock units vest at MCHP?
The restricted stock units vested in full on August 17, 2026. The earned performance stock units also vested on August 17, 2026, and in both cases the vested shares were delivered to the reporting person upon vesting, according to the footnotes.
AI-generated analysis. How Rhea-AI works. Not financial advice.
