Form 4: Arhaus Inc. Executive Settles Performance Share Units, Discloses Tax Withholding

Lisa Chi, Chief Merchandising Officer at Arhaus Inc., settled Performance Share Units and had shares withheld for tax obligations.

Summary

• On March 19, 2025, Lisa Chi, the Chief Merchandising Officer of Arhaus Inc., settled 41,352 Performance Share Units (PSUs).
• These PSUs, granted on August 2, 2022, were earned based on performance criteria achieved between January 1, 2022, and December 31, 2024.
• The settlement resulted in the acquisition of 41,352 shares of Class A Common Stock.
• Additionally, 14,971 shares of Class A Common Stock were withheld by Arhaus Inc. to cover income tax obligations related to the PSU settlement at a price of $9.2 per share.
• Following these transactions, Lisa Chi directly owns 129,116 shares of Class A Common Stock.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The settlement of PSUs suggests that performance targets were met, which is a positive indicator. The tax withholding is a routine event.

Positives

• The settlement of PSUs indicates that performance goals were met over the three-year performance period.

Industry Context

Form 4 filings are standard disclosures required by the SEC to provide transparency into the transactions of company insiders, allowing investors to track ownership changes and potential alignment of interests.

Comparison to Industry Standards

• Executive compensation packages often include performance-based equity awards like PSUs to incentivize executives to achieve specific company goals.
• Tax withholding practices related to equity compensation are standard across publicly traded companies.
• Comparable companies such as RH, Williams-Sonoma, and Ethan Allen also utilize equity-based compensation for their executives.

Stakeholder Impact

• The PSU settlement aligns executive compensation with company performance, potentially benefiting shareholders.
• The tax withholding impacts the executive's personal finances.

Key Dates

Keywords

Form 4, Arhaus Inc., Lisa Chi, Performance Share Units, Class A Common Stock, Beneficial Ownership, Tax Withholding, Settlement