Form 4: BILL Holdings CEO Rene Lacerte Reports Stock Transactions
SEC Form 4 Filing
Rene Lacerte, CEO of BILL Holdings, reports the vesting and subsequent sale of restricted stock units and performance stock units, along with other transactions, affecting his beneficial ownership in the company.
Summary
- Rene A. Lacerte, CEO of BILL Holdings, filed a Form 4 detailing changes in his beneficial ownership of the company's stock on February 28, 2024.
- The transactions included the vesting of 10,000 Restricted Stock Units (RSUs), 2,785 RSUs, 5,359 RSUs, 3,658 RSUs and 2,367 Performance Stock Units (PSUs).
- Lacerte also reported the disposition of 9,966 shares to cover tax withholding obligations related to the vesting of RSUs and PSUs at a price of $63.76.
- Following these transactions, Lacerte directly owns 102,863 shares of common stock.
- He also indirectly owns shares through various trusts, including the Chung Lacerte Trust, a family trust, the Ilio Irrevocable Trust, the Nene Irrevocable Trust, and the Makahakama Foundation, totaling 2,504,999 shares.
- The RSUs vest in equal quarterly installments over four years, subject to continued service.
- The PSUs vest over three years, with a portion vesting on August 28, 2023, and the remainder vesting quarterly over two years, also subject to continued service.
Sentiment
Score: 5
Explanation: Neutral sentiment as the document simply reports routine stock transactions by the CEO as part of his compensation.
Industry Context
Form 4 filings are a routine part of corporate governance, providing transparency into the trading activities of company insiders. This filing indicates the CEO's compensation structure includes stock-based awards that vest over time.
Comparison to Industry Standards
- Stock-based compensation is a common practice among publicly traded companies, particularly in the technology sector, to align management's interests with those of shareholders.
- Vesting schedules of four years for RSUs and three years for PSUs are fairly standard.
- Comparable companies such as Intuit, Square (Block), and PayPal also utilize stock-based compensation as part of their executive compensation packages.
Stakeholder Impact
- The transactions reported in the Form 4 have a minimal direct impact on stakeholders.
- The vesting of stock-based compensation is part of the company's overall compensation strategy, which can indirectly impact employee morale and shareholder value.
Key Dates
| Date | Description |
|---|---|
| 2004-02-15 | Date of Chung Lacerte Trust U/A |
| 2020-08-28 | First vesting date for some RSUs (16 equal quarterly installments) |
| 2021-08-28 | First vesting date for some RSUs (16 equal quarterly installments) |
| 2022-08-28 | First vesting date for some RSUs (16 equal quarterly installments) |
| 2023-08-28 | First vesting date for some PSUs (1/3rd vests) |
| 2023-11-28 | First vesting date for some RSUs (16 equal quarterly installments) |
| 2024-02-06 | Date of Issuer's Common Stock acquired under the Issuer's employee stock purchase plan |
| 2024-02-28 | Date of reported transactions (vesting of RSUs and PSUs, tax withholding) |
| 2024-03-01 | Date of signature for the Form 4 filing |
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