Microchip CEO Steve Sanghi Exercises Options, Nets 7,728 Shares

What Happened

• Steve Sanghi, President, CEO and Chair of Microchip Technology (MCHP), exercised/converted derivative awards on August 17, 2026. He exercised 13,177 underlying shares (two exercises: 7,020 and 6,157) at an exercise price of $80.26 per share (total exercise cost ≈ $1,057,586).
• To satisfy tax/exercise obligations, 5,449 shares were withheld/disposed (2,903 and 2,546 shares) valued at $80.26 each (total ≈ $437,337). After withholding, Sanghi received a net of 7,728 shares. The reporting also shows the derivative awards were cancelled/converted (derivative disposition entries at $0).
• Footnotes state certain restricted stock units (RSUs) and Performance Stock Units (PSUs) vested on August 17, 2026 and vested shares were delivered to the reporting person.

Key Details

• Transaction date: August 17, 2026; Form 4 filed August 19, 2026 (filed within the standard 2-business-day window).
• Exercise price: $80.26 per share. Acquired via exercise: 13,177 shares (7,020 + 6,157). Shares withheld for taxes/exercise payment: 5,449 (2,903 + 2,546). Net shares received: 7,728.
• Cash/exercise payment total ≈ $1.06M; value of shares withheld ≈ $437k.
• Reported beneficial ownership after the transactions is ~9.42 million shares (held primarily by The Sanghi Trust ~3.51M and The Sanghi Family Limited Partnership ~5.905M, per filing footnotes).
• Transaction codes: M = exercise/conversion of derivative; F = payment of exercise price or tax liability (share withholding). Footnotes F5 and F6 note RSU/PSU vesting and delivery of vested shares.

Context

• This was an exercise/vesting-related transaction (compensation/award-related), not an open-market sale or purchase; withholding of shares to cover taxes is routine and does not necessarily signal a market view.
• Because the shares were acquired via exercise/vesting and then partially withheld to cover obligations, the insider effectively increased his direct ownership by 7,728 shares.
• No indication in the filing of a 10% owner sale, 10b5-1 plan, or late filing issues.