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Companies · U · Services-Prepackaged Software · Other events · Aug 19, 2026

Unity grants CEO 684k performance RSUs tied to $60-$75 stock hurdles

CEO equity awardnew
684,444 PPSUs; 1-, 2-, and 3-year service hurdles plus 30-day VWAP tests
Unity Software Inc. (U) — what happened, in plain English, and what it means versus what the market expected.

This is a compensation disclosure, not an operating update. Unity granted 684,444 performance-based restricted stock units to a CEO, with vesting dependent on continued CEO service and stock-price performance; the filing provides no clean market benchmark against which to call the economics a beat or miss. (PPSU Award Grant Notice)

ItemTerms disclosed
Total PPSUs684,444 shares (PPSU Award Grant Notice)
First vesting tranche293,333 shares (PPSU Award Grant Notice)
Second vesting tranche293,333 shares (PPSU Award Grant Notice)
Third disclosed tranche97,778 shares (PPSU Award Grant Notice)
Service requirementCEO service through the 1st, 2nd, and 3rd anniversaries (Attachment I)
Performance periodFive years from the grant date (Attachment I)
Stock test30-consecutive-day VWAP hurdles (Attachment I)
Referenced price hurdles$60 and $75 (Attachment I)

The award is designed to retain the CEO while making the bulk of compensation conditional. The first two tranches require one and two years of continued CEO service, while the third requires three years; unvested units generally lapse when service ends. (Attachment I) 〔0〕

The shareholder-value test is demanding but not immediate. The stock hurdles must be reached through a 30-day VWAP during the five-year performance period, so the award does not create near-term share issuance or cash compensation. (Attachment I) 〔1〕

The filing is neutral for expectations because it changes incentives, not forecasts. It introduces a sizeable potential equity obligation and a clear CEO-retention mechanism, but the actual dilution and compensation cost depend on future vesting; the award is settled only in shares rather than cash. (Global Performance-Based Restricted Stock Unit Award Agreement) 〔2〕

Read the original 8-K on SEC EDGAR ↗
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