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

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

Summary

• On June 3, 2024, Phyllis Gotlib, President, International at American Well Corp, sold 71,455 shares of Class A Common Stock at a price of $0.4146 per share.
• The sale was executed to cover tax liabilities related to the vesting and settlement of restricted stock units on June 1, 2024.
• Following the transaction, Gotlib directly owns 2,383,655 shares of Class A Common Stock and indirectly owns 1,285,011 shares through her husband.

Sentiment

Score: 6

Explanation: The sentiment is neutral. The transaction is a routine 'sell to cover' to meet tax obligations, which is not necessarily indicative of the executive's view on the company's performance.

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 June 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 equity compensation. The market typically views 'sell to cover' transactions differently than discretionary sales, as they are often pre-planned and less indicative of an executive's sentiment about the company's future prospects.

Stakeholder Impact

• The sale of shares could have a minor impact on shareholders due to the increased supply of shares in the market, but the impact is likely to be minimal given the nature of the transaction.

Key Dates