Form 4: Atlassian Co-CEO Scott Farquhar Converts Class B Common Stock to Class A Under 10b5-1 Plan

Atlassian's Co-CEO, Scott Farquhar, converted 508,672 shares of Class B Common Stock into Class A Common Stock on July 1, 2024, as part of a pre-arranged Rule 10b5-1 trading plan.

Summary

• On July 1, 2024, Scott Farquhar, Co-CEO and Co-Founder of Atlassian, converted 508,672 shares of Class B Common Stock into Class A Common Stock.
• This conversion was executed under a Rule 10b5-1 trading plan adopted on February 14, 2024.
• The converted shares are held by Skip Enterprises Pty Limited as trustee for the Farquhar Family Trust.
• Each share of Class B Common Stock is convertible into Class A Common Stock on a one-to-one basis at any time, with no expiration date.

Sentiment

Score: 7

Explanation: The document reflects a neutral event (stock conversion under a pre-existing plan) with no apparent negative implications. The use of a 10b5-1 plan suggests transparency and adherence to regulations.

Industry Context

This transaction is a routine execution under a pre-arranged trading plan, which is a common practice among corporate executives to diversify their holdings and manage personal finances while avoiding accusations of insider trading. It doesn't necessarily reflect a change in the executive's confidence in the company.

Comparison to Industry Standards

• Rule 10b5-1 trading plans are widely used by executives at publicly traded companies, including those in the tech industry like Atlassian.
• Companies such as Microsoft, Apple, and Google have executives who utilize similar plans to manage their stock transactions.
• The size of the transaction is relatively small compared to the overall holdings of the executive, which is typical for these types of plans.

Stakeholder Impact

• The transaction is unlikely to have a significant impact on shareholders, as it is a routine conversion under a pre-arranged trading plan.
• Employees are unlikely to be affected by this transaction.
• Customers, suppliers, and creditors are not directly impacted by this transaction.

Key Dates