Form 4: AppLovin CEO Arash Adam Foroughi Disposes of Shares to Cover Tax Obligations
SEC Form 4
AppLovin CEO Arash Adam Foroughi disposed of 794,387 Class A Common Stock shares to cover tax obligations related to vesting of Restricted Stock Units and Performance Restricted Stock Units.
Summary
- AppLovin CEO Arash Adam Foroughi disposed of 794,387 Class A Common Stock shares on November 20, 2024.
- The shares were not sold on the open market but were withheld by the company to cover income tax obligations related to the vesting of previously reported Restricted Stock Units (RSUs) and Performance Restricted Stock Units (PSUs).
- Following the transaction, Foroughi directly owns 3,158,635 Class A Common Stock shares.
- Foroughi also has indirect ownership of 3,036,000 shares held by The JAF Children's Trust, 1,536,000 shares held by The WHK Trust, and 786,000 shares held by The OD Trust, all for the benefit of his children, but he disclaims beneficial ownership of these shares.
Sentiment
Score: 7
Explanation: The document reflects a routine transaction related to executive compensation and tax obligations. It is not indicative of any positive or negative sentiment towards the company's performance or future prospects.
Industry Context
This is a routine transaction for executives who receive stock-based compensation. It is common for companies to withhold shares to cover tax obligations when stock options or restricted stock units vest.
Comparison to Industry Standards
- Similar transactions are common among executives at publicly traded companies, particularly in the tech sector, where stock-based compensation is a significant part of executive pay.
- Companies like Meta, Google, and Amazon also regularly report similar transactions by their executives.
- The withholding of shares for tax purposes is a standard practice to simplify tax compliance for employees.
Stakeholder Impact
- The transaction has a neutral impact on shareholders as it is a standard procedure for executives.
- The transaction does not impact employees, customers, suppliers, or creditors.
Key Dates
| Date | Description |
|---|---|
| 11/20/2024 | Date of the transaction where shares were disposed of to cover tax obligations. |
| 11/22/2024 | Date the Form 4 was signed. |
Keywords
AppLovin, Arash Adam Foroughi, insider trading, Form 4, stock disposal, tax obligations, RSU, PSU, beneficial ownership
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