Microchip (NASDAQ: MCHP) COO equity awards vest, small 83-share sale
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
Microchip Technology’s chief operating officer, Richard J. Simoncic, reported routine equity compensation activity involving restricted and performance stock units that vested into common stock. On May 15, 2026, awards converted into a total of 6,252 shares of common stock at a stated value of $93.85 per share.
Shares are held indirectly through a trust. To cover tax obligations tied to these vesting events, the trust disposed of 1,788 shares at $93.85 via tax-withholding transactions, which are not open-market sales. The trust also sold 83 shares of common stock in an open‑market transaction at $93.85 per share, leaving indirect holdings of about 136,637 shares after the reported transactions.
Positive
- None.
Negative
- None.
Insider Trade Summary
Net Seller: 83 shares ($7,790)
Net Sell
18 txns
Insider
Simoncic Richard J
Role
CHIEF OPERATING OFFICER
Sold
83 shs ($8K)
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Restricted Stock Units | 702 | $0.00 | -- |
| Exercise | Performance Stock Units | 1,222 | $0.00 | -- |
| Exercise | Restricted Stock Units | 1,690 | $0.00 | -- |
| Exercise | Performance Stock Units | 2,015 | $0.00 | -- |
| Exercise | Restricted Stock Units | 194 | $0.00 | -- |
| Exercise | Restricted Stock Units | 429 | $0.00 | -- |
| Exercise | Common Stock | 702 | $93.85 | $66K |
| Tax Withholding | Common Stock | 192 | $93.85 | $18K |
| Exercise | Common Stock | 1,222 | $93.85 | $115K |
| Tax Withholding | Common Stock | 335 | $93.85 | $31K |
| Exercise | Common Stock | 1,690 | $93.85 | $159K |
| Tax Withholding | Common Stock | 463 | $93.85 | $43K |
| Exercise | Common Stock | 2,015 | $93.85 | $189K |
| Tax Withholding | Common Stock | 616 | $93.85 | $58K |
| Exercise | Common Stock | 194 | $93.85 | $18K |
| Sale | Common Stock | 83 | $93.85 | $8K |
| Exercise | Common Stock | 429 | $93.85 | $40K |
| Tax Withholding | Common Stock | 182 | $93.85 | $17K |
Holdings After Transaction:
Restricted Stock Units — 702 shares (Direct);
Performance Stock Units — 702 shares (Direct);
Common Stock — 136,829 shares (Indirect, Shares held Indirectly, by Trust.)
Footnotes (1)
- The restricted stock units vest in four quarterly installments of 1,406 shares beginning November 15, 2023, one quarterly installment of 702 shares on November 15, 2024, one quarterly installment of 704 shares on February 15, 2025 and six quarterly installments of 702 shares beginning on May 15, 2025 as long as the individual remains a service provider through the vesting date. Vested shares were delivered to the reporting person upon vest. 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 September 30, 2024. 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 ratably over eight quarters beginning on November 15, 2024 as long as the reporting person remains a service provider through the vesting date. Vested shares were delivered to the reporting person upon vest. The restricted stock units vested in full on May 15, 2026. Vested shares were delivered to the reporting person upon vest. 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 March 31, 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 May 15, 2026. Vested shares were delivered to the reporting person upon vest.
Key Figures
Shares from vested awards: 6,252 shares
Tax-withholding shares: 1,788 shares
Open-market sale: 83 shares
+4 more
7 metrics
Shares from vested awards
6,252 shares
Total exerciseShares from stock units on May 15, 2026
Tax-withholding shares
1,788 shares
Shares disposed to cover tax/exercise obligations
Open-market sale
83 shares
Non-derivative S-code sale at $93.85 per share
Implied share value
$93.85 per share
Price used across reported common stock transactions
Indirect holdings after transactions
136,637 shares
Total_shares_following_transaction on final F-code entry
Indirect trust tax dispositions
5 transactions
taxWithholdingCount of F-code entries
Derivative exercises
6,252 shares
exerciseShares from M-code derivative conversions
Key Terms
Restricted Stock Units, Performance Stock Unit, non-GAAP operating margin, tax-withholding disposition, +1 more
5 terms
Restricted Stock Units financial
"The restricted stock units vest in four quarterly installments of 1,406 shares..."
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 Unit financial
"Each Performance Stock Unit (PSU) granted under the Microchip Technology Incorporated 2004 Equity Incentive Plan..."
A performance stock unit is a type of reward companies give to employees, usually managers, that depends on how well the company performs over time. If the company hits specific goals, the employee earns shares of stock, like earning a prize for reaching certain levels in a game. It motivates employees to work hard because their rewards are tied to the company's success.
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.
tax-withholding disposition financial
"Payment of exercise price or tax liability by delivering securities"
A tax-withholding disposition is an event or transaction—such as selling or transferring securities, exercising options, or receiving compensation—that triggers a requirement to hold back part of the payment and remit it to tax authorities. It matters to investors because it reduces the cash they receive immediately and can change the timing and amount of taxable income, like a cashier taking a portion of your sale proceeds to pay taxes before you get the rest.
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 did Microchip (MCHP) COO Richard Simoncic report in this Form 4?
He reported routine equity compensation activity. Stock units and performance units vested into 6,252 shares of common stock, with related tax-withholding dispositions and a small open‑market sale of 83 shares at $93.85 per share.
What are the performance conditions on the Microchip (MCHP) PSUs mentioned?
The performance stock units depend on Microchip’s cumulative non‑GAAP operating margin over 12‑quarter periods ending September 30, 2024 and March 31, 2025. The target share amounts assume a 40.0% cumulative margin, with actual shares varying with performance.