Microchip Technology (MCHP) CFO awarded new RSU and PSU equity grants
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
Bjornholt James Eric reported acquisition or exercise transactions in this Form 4 filing.
Microchip Technology Inc. reported that Senior VP and CFO James Eric Bjornholt received new equity awards. He was granted 3,009 restricted stock units and 3,009 performance stock units, each representing a right to receive one share of common stock.
The restricted stock units vest in full on August 15, 2030, if he remains a service provider, with shares delivered at vesting. The performance stock units can pay out more or fewer than 3,009 shares based on Microchip’s cumulative non-GAAP operating margin over 12 quarters ending June 30, 2029, with the target tied to a 33.5% margin and vesting on August 15, 2030. The filing also shows 28,573 common shares held indirectly in a trust.
Positive
- None.
Negative
- None.
Insider Trade Summary
3 transactions reported
Mixed
3 txns
Insider
Bjornholt James Eric
Role
SENIOR VP AND CFO
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Grant/Award | Restricted Stock Units | 3,009 | $0.00 | -- |
| Grant/Award | Performance Stock Units | 3,009 | $0.00 | -- |
| holding | Common Stock | -- | -- | -- |
Holdings After Transaction:
Restricted Stock Units — 3,009 shares (Direct, null);
Performance Stock Units — 3,009 shares (Direct, null);
Common Stock — 28,573 shares (Indirect, Shares held Indirectly, by Trust.)
Footnotes (1)
- Each restricted stock unit represents a contingent right to receive one share of Microchip Technology Incorporated common stock. The restricted stock units will vest in full on August 15, 2030 as long as the individual remains a service provider through the vesting date. Vested shares will be delivered to the reporting person upon vest. Each performance stock unit represents a contingent right to receive one share of Microchip Technology Incorporated common stock. 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, 2029. 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 33.5% 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 will vest on August 15, 2030 as long as the reporting person remains a service provider through the vesting date. Vested shares will be delivered to the reporting person upon vest.
Key Figures
Restricted stock units granted: 3,009 units
Performance stock units granted (target): 3,009 units
Vesting date for RSUs and earned PSUs: August 15, 2030
+3 more
6 metrics
Restricted stock units granted
3,009 units
Grant to CFO on July 1, 2026; each unit equals one common share
Performance stock units granted (target)
3,009 units
Target PSUs based on cumulative non-GAAP operating margin
Vesting date for RSUs and earned PSUs
August 15, 2030
Requires continued service through vesting; shares delivered at vest
Performance measurement period
12 quarters ending June 30, 2029
Determines number of PSUs ultimately earned
Target operating margin for PSUs
33.5% cumulative non-GAAP margin
Metric for earning the target 3,009 PSU shares
Indirect common stock holdings
28,573 shares
Common stock held indirectly by trust as of July 1, 2026
Key Terms
Restricted Stock Units, Performance Stock Units, non-GAAP operating margin, Equity Incentive Plan
4 terms
Restricted Stock Units financial
"Each restricted stock unit represents a contingent right to receive one share"
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"
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.
Equity Incentive Plan financial
"granted under the Microchip Technology Incorporated (Microchip) 2004 Equity Incentive Plan"
An equity incentive plan is a program that gives employees, executives or directors the right to receive company stock or options to buy stock as part of their pay. Think of it as offering slices of future company profit to motivate people to boost long‑term performance; for investors it matters because it can align employee goals with shareholder value but also increases the number of shares outstanding, which can dilute existing ownership.
FAQ
What equity awards did Microchip Technology CFO receive in this Form 4 for MCHP?
The CFO received 3,009 restricted stock units and 3,009 performance stock units. Each unit corresponds to one Microchip common share, providing additional long-term equity-based compensation rather than a cash transaction in the open market.
When do the restricted stock units granted to Microchip’s CFO vest?
The restricted stock units vest in full on August 15, 2030. Vesting requires that the CFO remain a service provider to Microchip Technology through that date, with the underlying common shares delivered upon vesting.
How are the performance stock units for Microchip (MCHP) CFO earned?
Performance stock units are earned based on Microchip’s cumulative non-GAAP operating margin over 12 quarters ending June 30, 2029. The target 3,009 units correspond to achieving a 33.5% margin, with actual shares potentially higher or lower depending on performance.
What is the vesting schedule for the performance stock units in this Microchip filing?
Earned performance stock units will vest on August 15, 2030. Vesting occurs only if the CFO remains a service provider through that date, and vested shares of Microchip common stock are then delivered to him.
Does this Microchip Technology Form 4 show any stock purchases or sales by the CFO?
The filing does not show open-market purchases or sales. It reports equity grants of restricted and performance stock units and discloses 28,573 common shares held indirectly in a trust as of the reported date.
What performance metric determines the CFO’s performance stock unit payout at Microchip?
The key metric is Microchip’s cumulative non-GAAP operating margin over 12 quarters ending June 30, 2029. A 33.5% cumulative margin corresponds to the target 3,009 performance units, with the ultimate share payout adjusted higher or lower based on results.