Form 4: Beneficient Executive Jeff Welday Sells Shares to Cover Tax Obligations
Ownership Filing
Beneficient executive Jeff Welday sold shares of Class A common stock to cover tax obligations related to the vesting of restricted stock units.
Summary
- Jeff Welday, a Beneficient executive, sold a total of 2,411 shares of Class A common stock between December 10 and December 12, 2024.
- The sales were executed at prices ranging from $0.79 to $0.80 per share.
- These sales were to cover tax withholding obligations associated with the vesting of restricted stock units (RSUs) and restricted equity units (REUs).
- The RSUs and REUs were granted under the 2023 Equity Incentive Plan and the 2018 Equity Incentive Plan.
- The vesting schedules for these units varied, with some vesting fully on the grant date and others vesting over multiple years.
Sentiment
Score: 5
Explanation: The document describes a routine transaction related to executive compensation and does not indicate any positive or negative sentiment.
Industry Context
This is a routine transaction related to executive compensation and tax obligations, and is common for companies that use equity-based compensation.
Comparison to Industry Standards
- The sale of shares to cover tax obligations is a standard practice among publicly traded companies.
- Many companies use restricted stock units (RSUs) and restricted equity units (REUs) as part of their compensation packages.
- Vesting schedules vary widely across companies, but the vesting schedules described in the document are not unusual.
Stakeholder Impact
- The share sales have a minor dilutive effect on existing shareholders.
Key Dates
| Date | Description |
|---|---|
| 2020-01-01 | Grant date of 140,490 REUs under the 2018 Equity Incentive Plan, vesting 20% on grant date and the remaining 80% in four equal annual installments on June 3rd of each subsequent calendar year. |
| 2022-04-01 | Grant date of 7,200 REUs under the 2018 Equity Incentive Plan, vesting 40% on June 8, 2023, and the remaining 60% in three equal annual installments on April 1st of each subsequent calendar year. |
| 2023-07-15 | Grant date of 28,320 RSUs under the 2023 Equity Incentive Plan, vesting 20% on September 1, 2023, and the remaining 80% in four equal annual installments on September 1st of each subsequent calendar year. |
| 2023-07-15 | Grant date of 20,560 RSUs under the 2023 Equity Incentive Plan, fully vested on September 1, 2023. |
| 2023-09-01 | Vesting date for 20% of 28,320 RSUs granted on July 15, 2023, and full vesting of 20,560 RSUs granted on July 15, 2023. |
| 2024-08-22 | Grant date of 98,919 RSUs and 998 RSUs under the 2023 Equity Incentive Plan, both fully vested on the grant date. |
| 2024-10-17 | Grant date of 58,249 RSUs under the 2023 Equity Incentive Plan, fully vested on the grant date. |
| 2024-12-10 | Sale of 546 shares at $0.80 per share. |
| 2024-12-11 | Sale of 960 shares at $0.79 per share. |
| 2024-12-12 | Sale of 905 shares at $0.79 per share. |
Keywords
Beneficient, BENF, Jeff Welday, stock sale, restricted stock units, RSUs, restricted equity units, REUs, equity incentive plan, tax withholding
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