Form 4: ACV Auctions Director Kirsten Castillo Receives Equity Grant

ACV Auctions Inc. Director Kirsten Castillo was granted 9,868 restricted stock units (RSUs) on May 28, 2025, aligning her interests with shareholders.

Summary

• Kirsten Castillo, a Director of ACV Auctions Inc. (ACVA), acquired 9,868 shares of Class A Common Stock through a restricted stock unit (RSU) award.
• The transaction occurred on May 28, 2025, with an acquisition price of $0 per share, typical for RSU grants.
• Following this transaction, Ms. Castillo beneficially owns a total of 19,107 shares of Class A Common Stock.
• The RSUs are scheduled to vest on the first anniversary of the grant date (May 28, 2026), or potentially sooner, specifically the day immediately preceding the next Annual Meeting.
• Vesting is contingent upon Ms. Castillo's continuous service to the company through the applicable vesting date.

Sentiment

Score: 7

Explanation: The grant of restricted stock units to a director is a positive event as it aligns management and board interests with shareholders, promoting long-term value creation. It is a standard and expected compensation practice.

Positives

• The grant of restricted stock units to Director Kirsten Castillo aligns her financial interests directly with the long-term performance and success of ACV Auctions Inc. and its shareholders.
• Equity compensation is a standard practice for retaining and incentivizing experienced board members.

Risks

• The vesting of the restricted stock units is subject to Kirsten Castillo's continuous service through the applicable vesting date, meaning the shares could be forfeited if her service terminates prior to vesting.

Future Outlook

The restricted stock units granted to Director Kirsten Castillo are set to vest on the first anniversary of the grant date (May 28, 2026) or potentially earlier, specifically the day immediately preceding the next Annual Meeting, provided her continuous service to the company.

Industry Context

The granting of restricted stock units to board directors is a common practice across various industries, including technology and automotive marketplaces, to attract, retain, and motivate qualified individuals by linking their compensation to the company's long-term stock performance. This aligns the interests of the director with those of the shareholders.

Comparison to Industry Standards

• Equity compensation, particularly through restricted stock units (RSUs), is a standard component of director compensation packages in publicly traded companies, including those in the automotive technology and online marketplace sectors like Carvana Co. (CVNA) or Vroom, Inc. (VRM).
• The structure of vesting over a period (e.g., one year or until the next annual meeting) is typical for such awards, aiming to ensure continued commitment and alignment.
• The grant of 9,868 RSUs to a director is within the typical range for non-executive director compensation at companies of ACV Auctions' size and market capitalization, comparable to similar grants observed at peers.

Stakeholder Impact

• Shareholders: The RSU grant aligns the director's interests with shareholders, potentially leading to decisions that enhance long-term shareholder value.
• Employees: No direct impact on general employees is indicated by this filing.

Next Steps

• The restricted stock units will vest on the first anniversary of the grant date (May 28, 2026) or the day immediately preceding the next Annual Meeting, whichever is sooner, subject to continuous service.

Key Dates

Keywords

ACV Auctions, ACVA, Kirsten Castillo, Restricted Stock Units, RSU, Equity Grant, Insider Transaction, Form 4, Director Compensation, Stock Award