Note 6 - Employee Stock Benefit Plans	9 Months Ended
Sep. 26, 2020
Notes to Financial Statements
Share-based Payment Arrangement [Text Block]	6. Employee Stock Benefit Plans Our 2005 Equity Incentive Plan (“2005 Plan”) is a broad-based, long-term retention program intended to attract, motivate, and retain talented employees as well as align stockholder and employee interests. Awards that may be granted under the program include, but are not limited to, non-qualified and incentive stock options, restricted stock units, and performance stock units. We settle employee stock option exercises, employee stock purchase plan purchases, and the vesting of restricted stock units, and performance stock units with newly issued common shares. At September 26, 2020, there were 1,664,421 shares available for future equity grants under the 2005 Plan. Stock Options Stock options may be granted to employees, consultants and non-employee directors to purchase a fixed number of shares of our common stock. The exercise prices of options granted are at least equal to the fair market value of our common stock on the dates of grant and options vest and become exercisable in annual increments that range from one to four years from the date of grant. Stock options granted under the 2005 Plan have a maximum contractual term of ten years. In the first nine months of fiscal 2020 we did not grant any stock options and we issued 28,455 shares of our common stock on the exercise of options that were granted previously. At September 26, 2020, we had 334,821 stock options exercisable and outstanding. These options had a weighted-average exercise price of $10.02 per share, an aggregate intrinsic value of approximately $2.3 million and the weighted average remaining contractual term was approximately 2.1 years. Restricted Stock Units We grant restricted stock units (“RSUs”) to certain employees, consultants and directors. RSUs vest in annual increments that range from one to four years from the date of grant. Prior to vesting, RSUs do not have dividend equivalent rights, do not have voting rights and the shares underlying the RSUs are not considered issued and outstanding. New shares of our common stock will be issued on the date the RSUs vest net of the minimum statutory tax withholding requirements to be paid by us on behalf of our employees. As a result, the actual number of shares issued will be fewer than the actual number of RSUs outstanding at September 26, 2020. In the first nine months of fiscal 2020 we awarded 778,903 RSUs, we issued 575,830 shares of our common stock on vesting of previously granted awards and 63,283 shares were forfeited. At September 26, 2020, we had 1,467,448 RSUs outstanding with an aggregate intrinsic value of approximately $24.7 million and the weighted average remaining vesting period was approximately 1.5 years. Performance Stock Units We also grant performance stock units (“PSUs”) to senior executives as a part of our long-term equity compensation program. The number of shares of common stock that will ultimately be issued to settle PSUs granted ranges from 25% to 200% of the number granted and is determined based on certain performance criteria over a three-year measurement period. The performance criteria for the PSUs are based on a combination of our annualized Total Shareholder Return (“TSR”) for the performance period and the relative performance of our TSR compared with the annualized TSR of certain peer companies for the performance period. PSUs granted vest 100% on the third anniversary of their grant, assuming achievement of the applicable performance criteria. We estimated the fair value of the PSUs using a Monte Carlo simulation model on the date of grant. Compensation expense is recognized ratably over the derived service period. New shares of our common stock will be issued on the date the PSUs vest net of the minimum statutory tax withholding requirements to be paid by us on behalf of our employees. In the first nine months of fiscal 2020, we awarded 200,249 PSUs, we issued 39,075 shares of our common stock on vesting of previously granted awards and 99,933 shares were forfeited. At September 26, 2020, we had 425,435 PSUs outstanding with an aggregate intrinsic value of approximately $7.1 million and the weighted average remaining vesting period was approximately 1.8 years. Employee Stock Purchase Plan The Cohu, Inc. 1997 Employee Stock Purchase Plan (“ESPP”) provides for the issuance of shares of our common stock. Under the ESPP, eligible employees may purchase shares of Cohu common stock through payroll deductions at a price equal to 85 percent of the lower of the fair market value of Cohu common stock at the beginning or end of each 6-month purchase period, subject to certain limits. During the first nine months of fiscal 2020, 113,610 shares of our common stock were sold to our employees under the ESPP leaving 797,727 shares available for future issuance.

Note 6 - Employee Stock Benefit Plans

9 Months Ended

Sep. 26, 2020

Share-based Payment Arrangement [Text Block]

6. Employee Stock Benefit Plans

Our 2005 Equity Incentive Plan (“2005 Plan”) is a broad-based, long-term retention program intended to attract, motivate, and retain talented employees as well as align stockholder and employee interests. Awards that may be granted under the program include, but are not limited to, non-qualified and incentive stock options, restricted stock units, and performance stock units. We settle employee stock option exercises, employee stock purchase plan purchases, and the vesting of restricted stock units, and performance stock units with newly issued common shares. At September 26, 2020, there were 1,664,421 shares available for future equity grants under the 2005 Plan.

Stock Options

Stock options may be granted to employees, consultants and non-employee directors to purchase a fixed number of shares of our common stock. The exercise prices of options granted are at least equal to the fair market value of our common stock on the dates of grant and options vest and become exercisable in annual increments that range from one to four years from the date of grant. Stock options granted under the 2005 Plan have a maximum contractual term of ten years. In the first nine months of fiscal 2020 we did not grant any stock options and we issued 28,455 shares of our common stock on the exercise of options that were granted previously.

At September 26, 2020, we had 334,821 stock options exercisable and outstanding. These options had a weighted-average exercise price of $10.02 per share, an aggregate intrinsic value of approximately $2.3 million and the weighted average remaining contractual term was approximately 2.1 years.

Restricted Stock Units

We grant restricted stock units (“RSUs”) to certain employees, consultants and directors. RSUs vest in annual increments that range from one to four years from the date of grant. Prior to vesting, RSUs do not have dividend equivalent rights, do not have voting rights and the shares underlying the RSUs are not considered issued and outstanding. New shares of our common stock will be issued on the date the RSUs vest net of the minimum statutory tax withholding requirements to be paid by us on behalf of our employees. As a result, the actual number of shares issued will be fewer than the actual number of RSUs outstanding at September 26, 2020.

In the first nine months of fiscal 2020 we awarded 778,903 RSUs, we issued 575,830 shares of our common stock on vesting of previously granted awards and 63,283 shares were forfeited. At September 26, 2020, we had 1,467,448 RSUs outstanding with an aggregate intrinsic value of approximately $24.7 million and the weighted average remaining vesting period was approximately 1.5 years.

Performance Stock Units

We also grant performance stock units (“PSUs”) to senior executives as a part of our long-term equity compensation program. The number of shares of common stock that will ultimately be issued to settle PSUs granted ranges from 25% to 200% of the number granted and is determined based on certain performance criteria over a three-year measurement period. The performance criteria for the PSUs are based on a combination of our annualized Total Shareholder Return (“TSR”) for the performance period and the relative performance of our TSR compared with the annualized TSR of certain peer companies for the performance period. PSUs granted vest 100% on the third anniversary of their grant, assuming achievement of the applicable performance criteria.

We estimated the fair value of the PSUs using a Monte Carlo simulation model on the date of grant. Compensation expense is recognized ratably over the derived service period. New shares of our common stock will be issued on the date the PSUs vest net of the minimum statutory tax withholding requirements to be paid by us on behalf of our employees.

In the first nine months of fiscal 2020, we awarded 200,249 PSUs, we issued 39,075 shares of our common stock on vesting of previously granted awards and 99,933 shares were forfeited. At September 26, 2020, we had 425,435 PSUs outstanding with an aggregate intrinsic value of approximately $7.1 million and the weighted average remaining vesting period was approximately 1.8 years.

Employee Stock Purchase Plan

The Cohu, Inc. 1997 Employee Stock Purchase Plan (“ESPP”) provides for the issuance of shares of our common stock. Under the ESPP, eligible employees may purchase shares of Cohu common stock through payroll deductions at a price equal to 85 percent of the lower of the fair market value of Cohu common stock at the beginning or end of each 6-month purchase period, subject to certain limits. During the first nine months of fiscal 2020, 113,610 shares of our common stock were sold to our employees under the ESPP leaving 797,727 shares available for future issuance.