Semtech Corporation (Nasdaq: SMTC), a leading high-performance semiconductor, IoT systems, and cloud connectivity service provider, has announced the appointment of Mark Lin as its new executive vice president and chief financial officer, effective from October 2, 2023.
In accordance with his employment agreement, Semtech granted Mr. Lin a stock unit award comprising 75,939 shares of Semtech common stock. Out of these, 37,969 are time-based vesting stock units (“RSUs”) set to vest over a three-year period, contingent upon Mr. Lin’s continuous service. One-third of the RSUs are scheduled to vest on the first anniversary of the Transition Date, followed by quarterly installments over the subsequent two years. Additionally, 37,970 stock units represent a “target” number of performance-based vesting stock units. This performance-based award will vest based on Semtech’s financial performance measures (“Financial Measure PSUs”) and relative total shareholder return (“Relative TSR PSUs”) during the three-year performance period spanning fiscal years 2024, 2025, and 2026. The actual vesting percentage ranges from 0% to 200%, depending on the company’s performance against the specified criteria.
All vested stock units will be converted into Semtech common stock shares. Importantly, these stock units, including RSUs and Relative TSR PSUs, are structured as an “inducement grant,” complying with applicable listing rules, and were not issued under Semtech’s 2017 Long-Term Equity Incentive Plan.
Mark Lin’s appointment represents a strategic move for Semtech, marking an important addition to the company’s leadership team.
