Form 4: Butterfly Network Director S. Louise Phanstiel Acquires Shares Through Restricted Stock Units

Director S. Louise Phanstiel acquired 157,894 shares of Butterfly Network's Class A Common Stock through restricted stock units (RSUs) as part of the annual nonemployee director grant.

Summary

• S. Louise Phanstiel, a director of Butterfly Network, acquired 157,894 shares of Class A Common Stock on June 10, 2024.
• The acquisition was in the form of restricted stock units (RSUs) granted as part of the annual nonemployee director compensation.
• These RSUs vest fully on the date of the Issuer's 2025 Annual Stockholders Meeting, contingent upon continued service on the Board of Directors.
• Following the transaction, Ms. Phanstiel directly owns 285,071 shares of Class A Common Stock.
• Additionally, she indirectly owns 60,049 shares through H.G. Phanstiel LP, where she serves as the Managing Member, disclaiming beneficial ownership except to the extent of her pecuniary interest.

Sentiment

Score: 6

Explanation: The sentiment is neutral. It reflects a standard transaction related to director compensation. The acquisition of shares by a director is generally viewed positively, but it's a routine event.

Positives

• The acquisition of shares by a director can be seen as a positive signal, indicating confidence in the company's future prospects.
• The vesting of RSUs contingent on continued service aligns the director's interests with those of the shareholders.

Future Outlook

The vesting of the RSUs is contingent upon the Reporting Person's continued service on the Board of Directors until the 2025 Annual Stockholders Meeting.

Industry Context

This filing is a routine disclosure related to insider transactions, specifically the granting of stock-based compensation to a nonemployee director. Such grants are common in publicly traded companies to align the interests of directors with those of shareholders.

Comparison to Industry Standards

• Director compensation packages often include stock options or restricted stock units to incentivize long-term value creation.
• The vesting schedule of the RSUs, tied to continued service, is a standard practice to ensure ongoing commitment from board members.
• Comparing the size of the RSU grant to those of directors at similarly sized medical technology companies would provide further context on the competitiveness of Butterfly Network's compensation practices.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders as it aligns the director's interests with the company's long-term success.

Key Dates