Microchip (MCHP) SVP Krawczyk receives RSU and PSU grants tied to 2030 vesting
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
Krawczyk Joseph R II reported acquisition or exercise transactions in this Form 4 filing.
Microchip Technology senior vice president Joseph R. Krawczyk II reported new equity awards rather than open-market trades. He received 1,480 Restricted Stock Units, each representing a right to one share of common stock, which will vest in full on August 15, 2030 if he remains a service provider through that date.
He also received 1,480 Performance Stock Units tied to Microchip’s cumulative non-GAAP operating margin over 12 quarters ending June 30, 2029. The target PSU amount assumes a 33.5% cumulative non-GAAP operating margin, and the actual shares earned may be higher or lower depending on performance. Following these awards, he directly holds 15,144 shares of common stock, with the PSUs and RSUs to be settled in shares upon vesting.
Positive
- None.
Negative
- None.
Insider Trade Summary
3 transactions reported
Mixed
3 txns
Insider
Krawczyk Joseph R II
Role
SR. VP, WW CLIENT ENGAGEMENT
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Grant/Award | Restricted Stock Units | 1,480 | $0.00 | -- |
| Grant/Award | Performance Stock Units | 1,480 | $0.00 | -- |
| holding | Common Stock | -- | -- | -- |
Holdings After Transaction:
Restricted Stock Units — 1,480 shares (Direct, null);
Performance Stock Units — 1,480 shares (Direct, null);
Common Stock — 15,144 shares (Direct, null)
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: 1,480 units
Performance Stock Units granted (target): 1,480 units
Cumulative non-GAAP operating margin target: 33.5%
+3 more
6 metrics
Restricted Stock Units granted
1,480 units
Each RSU equals one share of common stock; vesting August 15, 2030
Performance Stock Units granted (target)
1,480 units
Target PSUs based on performance over 12 quarters ending June 30, 2029
Cumulative non-GAAP operating margin target
33.5%
Target margin for earning 1,480 PSUs over 12-quarter measurement period
Common shares held after transaction
15,144 shares
Direct ownership following reported Form 4 transactions
PSU/RSU vesting date
August 15, 2030
Vesting date for both RSU and earned PSU awards, subject to service
Performance measurement period end
June 30, 2029
End of 12-quarter period used to calculate PSU performance outcome
Key Terms
Restricted Stock Units, Performance Stock Units, non-GAAP operating margin, 2004 Equity Incentive Plan
4 terms
Restricted Stock Units financial
"The restricted stock units will vest in full on August 15, 2030"
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.
2004 Equity Incentive Plan financial
"PSU granted under the Microchip Technology Incorporated (Microchip) 2004 Equity Incentive Plan"
FAQ
What equity awards did Microchip (MCHP) grant to Joseph R. Krawczyk II?
Microchip granted Joseph R. Krawczyk II 1,480 Restricted Stock Units and 1,480 Performance Stock Units. Each unit represents a contingent right to receive one share of Microchip common stock, subject to time-based vesting and, for PSUs, performance conditions.
When do Joseph R. Krawczyk II’s new RSU and PSU awards at Microchip (MCHP) vest?
Both the Restricted Stock Units and any Performance Stock Units earned are scheduled to vest on August 15, 2030. Vesting requires that Krawczyk remain a service provider through this date, after which vested shares will be delivered in common stock.
How are Microchip (MCHP) Performance Stock Units for Joseph R. Krawczyk II determined?
The Performance Stock Units are based on Microchip’s cumulative non-GAAP operating margin over 12 quarters ending June 30, 2029. The target 1,480 PSUs assume a 33.5% margin, with the actual number of shares earned adjusted higher or lower by performance.
What does the 33.5% cumulative non-GAAP operating margin target mean for Microchip (MCHP) PSUs?
The 33.5% cumulative non-GAAP operating margin is the performance target for earning the 1,480 target PSUs. If Microchip’s actual cumulative margin over the 12-quarter period is above or below this level, the final PSUs earned will increase or decrease accordingly.
Are Joseph R. Krawczyk II’s new Microchip (MCHP) equity awards open-market purchases?
No, the reported transactions are equity grants, not open-market purchases or sales. The RSUs and PSUs were awarded at a price of $0.00 per unit as part of compensation, and future share delivery depends on continued service and, for PSUs, performance metrics.