Form 4: ACV Auctions Inc. Executive Michael Waterman Reports Changes in Beneficial Ownership

Michael Waterman, Chief Sales Officer of ACV Auctions Inc., reports the acquisition of 33,960 shares of Class A Common Stock and the disposal of 13,364 shares to cover tax liabilities.

Summary

• On March 4, 2025, Michael Waterman, Chief Sales Officer of ACV Auctions Inc., acquired 33,960 shares of Class A Common Stock at a price of $14.83 per share.
• These shares were granted as Restricted Stock Units (RSUs) under the company's 2024 Target Bonus Program, with the targets deemed achieved by the Board of Directors.
• The RSUs vested 100% upon grant on March 4, 2025.
• Additionally, 13,364 shares were disposed of at $14.83 per share to cover the tax liability associated with the vesting of the RSUs.
• Following these transactions, Waterman directly owns 343,551 shares of Class A Common Stock.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The RSU grant indicates confidence in the executive and the company's performance, while the tax-related sale is a routine event.

Positives

• The grant of RSUs indicates that the Board of Directors believes that the targets defined by the Compensation Committee for the fiscal year 2024 were achieved.
• The immediate vesting of the RSUs suggests confidence in the company's current performance and future prospects.

Negatives

• The disposal of 13,364 shares to cover tax liabilities, while not a discretionary sale, reduces Waterman's overall holdings.

Future Outlook

The document does not contain specific forward-looking statements, but the RSU grant suggests an expectation of continued performance that meets or exceeds targets.

Industry Context

Executive compensation through stock grants is a common practice in publicly traded companies to align management's interests with those of shareholders. The vesting of RSUs based on performance targets is also a standard approach to incentivize specific achievements.

Comparison to Industry Standards

• Stock-based compensation is a common practice among publicly traded companies, particularly in the tech sector, to incentivize executives and align their interests with shareholders.
• Companies like Carvana and Copart also utilize stock options and restricted stock units as part of their executive compensation packages.
• The vesting schedules and performance metrics associated with these grants vary depending on the company's specific goals and industry practices.

Stakeholder Impact

• The RSU grant aligns management's interests with shareholders, potentially driving long-term value creation.
• The tax-related sale has a minimal impact on the overall market.

Key Dates