Form 4: American Well Corp Executive Phyllis Gotlib Sells Shares to Cover Tax Obligations

Phyllis Gotlib, President, International at American Well Corp, sold 798 shares of Class A Common Stock to cover tax liabilities arising from the vesting of restricted stock units.

Summary

• On October 1, 2024, Phyllis Gotlib, President, International at American Well Corp, sold 798 shares of Class A Common Stock.
• The sale was executed at a price of $9.1543 per share.
• The transaction was conducted to cover the tax liability resulting from the vesting and settlement of restricted stock units.
• Following the transaction, Gotlib directly owns 113,788 shares of Class A Common Stock and indirectly owns 64,250 shares through her husband.

Sentiment

Score: 6

Explanation: The sentiment is neutral. The transaction is a routine sale to cover tax obligations, which doesn't necessarily indicate a positive or negative outlook on the company's future.

Management Comments

• The sales reported in this Form 4 were made in order to pay the tax liability arising from the vesting and settlement of restricted stock units on Ocober 1, 2024.
• The sales were effected through and automatic 'sell to cover' transaction that did not represent a discretionary trade by the reporting person.

Industry Context

Executive stock sales are a common occurrence, particularly to cover tax obligations related to stock-based compensation. These transactions are closely monitored by investors for insights into executive sentiment and potential future company performance.

Comparison to Industry Standards

• Executive stock sales to cover tax obligations are a standard practice across publicly traded companies.
• The volume of shares sold is relatively small compared to the total shares held by the reporting person, suggesting it is primarily for tax purposes.
• Comparable companies in the telehealth sector also see similar patterns of executive stock sales for tax planning.

Stakeholder Impact

• The sale of shares by an executive could have a minor impact on shareholder sentiment, but is unlikely to significantly affect the company's operations or financial performance.

Key Dates