Microchip (NASDAQ: MCHP) COO receives new PSU and RSU equity awards
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
Simoncic Richard J reported acquisition or exercise transactions in this Form 4 filing.
Microchip Technology Chief Operating Officer Richard J. Simoncic reported new equity awards rather than open‑market trades. He received 3,524 Performance Stock Units and 3,523 Restricted Stock Units, each representing a contingent right to one share of common stock as compensation.
The restricted stock units will vest in full on August 15, 2030 if he remains a service provider, with shares delivered at vesting. The performance stock units are tied to Microchip’s cumulative non‑GAAP operating margin over 12 quarters ending June 30, 2029, with the reported 3,524 units reflecting a target level based on achieving a 33.5% margin. Actual PSU shares earned may be higher or lower depending on performance, and earned PSUs will also vest on August 15, 2030.
Positive
- None.
Negative
- None.
Insider Trade Summary
3 transactions reported
Mixed
3 txns
Insider
Simoncic Richard J
Role
CHIEF OPERATING OFFICER
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Grant/Award | Restricted Stock Units | 3,523 | $0.00 | -- |
| Grant/Award | Performance Stock Units | 3,524 | $0.00 | -- |
| holding | Common Stock | -- | -- | -- |
Holdings After Transaction:
Restricted Stock Units — 3,523 shares (Direct, null);
Performance Stock Units — 3,524 shares (Direct, null);
Common Stock — 130,508 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
Performance Stock Units granted: 3,524 units
Restricted Stock Units granted: 3,523 units
Indirect common shares held by trust: 130,508 shares
+3 more
6 metrics
Performance Stock Units granted
3,524 units
Target PSU award to COO as of July 1, 2026
Restricted Stock Units granted
3,523 units
RSU award to COO as of July 1, 2026
Indirect common shares held by trust
130,508 shares
Indirect ownership reported as of July 1, 2026
PSU measurement period length
12 quarters
Cumulative non-GAAP operating margin through June 30, 2029
Target non-GAAP operating margin
33.5%
Target for earning reported PSU share count
Vesting date for RSUs and PSUs
August 15, 2030
Awards vest if service continues through this date
Key Terms
Performance Stock Units, Restricted Stock Units, non-GAAP operating margin, 2004 Equity Incentive Plan, +1 more
5 terms
Performance Stock Units financial
"Each Performance Stock Unit (PSU) granted under the Microchip Technology Incorporated (Microchip) 2004 Equity Incentive Plan represents a contingent right to receive shares..."
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.
Restricted Stock Units financial
"Each restricted stock unit represents a contingent right to receive one share of Microchip Technology Incorporated common stock."
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.
non-GAAP operating margin financial
"based on Microchip's cumulative non-GAAP operating margin over a period of 12 quarters ending June 30, 2029."
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
"Each Performance Stock Unit (PSU) granted under the Microchip Technology Incorporated (Microchip) 2004 Equity Incentive Plan represents a contingent right..."
service provider financial
"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."
FAQ
What did MCHP COO Richard Simoncic report in this Form 4?
Richard Simoncic reported new equity awards, not stock trades. He received 3,524 Performance Stock Units and 3,523 Restricted Stock Units, each convertible into one share of Microchip common stock upon vesting, as part of his compensation package.
How many Performance Stock Units did the MCHP COO receive and what do they represent?
He received 3,524 Performance Stock Units (PSUs). Each PSU represents a contingent right to one share of Microchip common stock, with the actual number of shares earned depending on Microchip’s cumulative non‑GAAP operating margin over the 12 quarters ending June 30, 2029.
What are the terms of the Restricted Stock Units granted to the MCHP COO?
He was granted 3,523 Restricted Stock Units (RSUs). Each RSU entitles him to one share of common stock, vesting in full on August 15, 2030, provided he remains a service provider through that date, with shares delivered upon vesting.
How is Microchip’s performance measured for the PSU grant to the COO?
The PSU grant is tied to non‑GAAP operating margin performance. Target shares are based on achieving a 33.5% cumulative non‑GAAP operating margin over 12 quarters ending June 30, 2029, with the final number of shares adjusted up or down depending on actual results.
What does the indirect holding of MCHP common stock by trust indicate in this filing?
The filing shows 130,508 common shares held indirectly through a trust. This line reflects existing indirect ownership rather than a new transaction, indicating shares attributed to Simoncic via a trust structure, not a recent market purchase or sale.