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

Atlassian CEO Michael Cannon-Brookes sold a total of 7,948 Class A common stock shares on November 21, 2024, through a pre-arranged 10b5-1 trading plan.

Summary

• Michael Cannon-Brookes, CEO and Co-Founder of Atlassian, sold a total of 7,948 shares of Class A Common Stock on November 21, 2024.
• The sales were executed through a Rule 10b5-1 trading plan adopted on February 8, 2024.
• The transactions were conducted in multiple trades throughout the day at varying prices.
• The shares were sold at weighted average prices ranging from $247.6593 to $254.9493.
• The shares are held indirectly by CBC Co Pty Limited as trustee for the Cannon-Brookes Head Trust.
• Following these transactions, Mr. Cannon-Brookes still indirectly holds a substantial number of 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.

Risks

• Sales by a company's CEO, even under a pre-arranged plan, can sometimes be perceived negatively by the market.

Industry Context

Insider trading activity is a common occurrence in publicly traded companies, and these transactions are closely monitored by regulators and investors. The use of 10b5-1 plans is a common way for insiders to sell shares while avoiding accusations of trading on non-public information.

Comparison to Industry Standards

• The use of a 10b5-1 trading plan is a standard practice for executives at publicly traded companies like Atlassian, similar to practices at companies such as Microsoft, Google, and Salesforce.
• The reported transactions are consistent with typical insider sales under such plans, where sales are executed over time to avoid market disruption.
• The weighted average prices are within the normal trading range for Atlassian stock on the day of the transactions, similar to what would be expected for other large tech companies.

Stakeholder Impact

• The share sales may have a minor impact on shareholder sentiment, but the pre-arranged nature of the transactions should mitigate any significant concerns.
• The transactions do not directly impact employees, customers, suppliers, or creditors.

Key Dates

Keywords

Atlassian, Michael Cannon-Brookes, insider trading, share sale, Rule 10b5-1, Class A Common Stock, SEC Form 4