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 December 11, 2024, through a pre-arranged 10b5-1 trading plan.

Summary

• Michael Cannon-Brookes, CEO and Co-Founder of Atlassian, sold 7,948 shares of Class A Common Stock on December 11, 2024.
• The sales were executed through a Rule 10b5-1 trading plan adopted on February 8, 2024.
• The transactions occurred in multiple trades throughout the day at varying prices.
• The shares were sold at weighted average prices ranging from $268.7467 to $274.4363.
• The shares are held indirectly by CBC Co Pty Limited as trustee for the Cannon-Brookes Head Trust.
• Following these transactions, the trust now holds 103,324 shares.

Sentiment

Score: 5

Explanation: The document reflects a routine transaction under a pre-arranged trading plan, with no indication of positive or negative sentiment. 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

Sales by insiders are a common occurrence, especially when using pre-arranged trading plans like Rule 10b5-1, which allows insiders to sell shares without being accused of trading on non-public information. This is a routine transaction and does not necessarily indicate a change in the company's outlook.

Comparison to Industry Standards

• Many tech company executives use 10b5-1 plans to manage their personal finances and avoid accusations of insider trading.
• The volume of shares sold is relatively small compared to the total outstanding shares of Atlassian.
• Similar sales are often seen at other tech companies such as Microsoft, Google, and Amazon, where executives regularly sell shares for diversification and personal financial planning.

Stakeholder Impact

• The impact on shareholders is likely to be minimal, as the sales were pre-planned and represent a small portion of the total shares outstanding.
• The sales do not indicate any change in the company's operations or outlook.

Key Dates

Keywords

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