Form 4: Atlassian CEO Michael Cannon-Brookes Sells Shares Under 10b5-1 Trading Plan

Atlassian CEO Michael Cannon-Brookes sold a total of 8,848 Class A common stock shares on December 4, 2024, through a pre-arranged 10b5-1 trading plan.

Summary

• Michael Cannon-Brookes, CEO and Co-Founder of Atlassian, executed multiple sales of Class A common stock on December 4, 2024.
• The sales were conducted under a pre-arranged Rule 10b5-1 trading plan adopted on February 8, 2024.
• A total of 8,848 shares were sold across 14 transactions at varying prices.
• The sales were executed at weighted average prices ranging from $273.36 to $287.79 per share.
• The shares were sold indirectly through a trust, CBC Co Pty Limited as trustee for the Cannon-Brookes Head Trust.
• Following these transactions, the trust now holds 143,064 shares.

Sentiment

Score: 5

Explanation: The document reflects a routine transaction under a pre-arranged trading plan, which is neither positive nor negative. It is a neutral event from an investment perspective.

Risks

• The sale of shares by a high-profile executive could be perceived negatively by the market, potentially impacting the stock price.

Industry Context

This is a routine disclosure of stock sales by a company executive under a pre-arranged trading plan, which is a common practice to avoid accusations of insider trading. It is not unusual for executives to sell shares for personal financial management.

Comparison to Industry Standards

• Sales under 10b5-1 plans are a common practice among executives at publicly traded companies, including those in the technology sector like Atlassian.
• Similar transactions are regularly reported by executives at companies like Microsoft, Salesforce, and Adobe, where pre-planned sales are used for personal financial planning.
• The volume of shares sold is relatively small compared to the total outstanding shares of Atlassian, which is typical for these types of transactions.

Stakeholder Impact

• The stock sales could have a minor impact on shareholder sentiment, but the pre-planned nature of the transactions should mitigate any significant negative reaction.

Key Dates

Keywords

Atlassian, Michael Cannon-Brookes, stock sale, insider trading, Rule 10b5-1, Class A common stock, executive, CBC Co Pty Limited, Cannon-Brookes Head Trust