Form 4: C3.ai Director Bruce Sewell Granted Stock Options

Director Bruce Sewell received stock options for 24,993 shares of C3.ai, Inc. on October 2, 2024, vesting quarterly based on board meeting attendance.

Summary

• Bruce Sewell, a director of C3.ai, Inc., was granted stock options on October 2, 2024.
• The options are for 24,993 shares of Class A Common Stock.
• The exercise price of the options is $22.89 per share.
• The options vest quarterly, with 5% of the shares vesting on the last day of each fiscal quarter, starting October 2, 2024, provided Sewell attends the regularly scheduled board meetings.
• If Sewell misses a board meeting, the vesting of those quarterly shares will be suspended.
• Any suspended shares will only vest following the fifth anniversary of the vesting commencement date if attendance requirements are met in subsequent periods.
• The options expire on October 1, 2034.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, indicating stability and alignment of interests. It's a neutral-positive event.

Positives

• The granting of stock options to a director aligns their interests with those of the shareholders.
• The vesting schedule incentivizes continued service and active participation on the board.

Risks

• The vesting of the options is contingent on Sewell's continued service as a director and attendance at board meetings.
• Failure to meet these conditions could result in the suspension of vesting for certain shares.

Future Outlook

The document does not contain specific forward-looking statements beyond the vesting schedule of the stock options.

Industry Context

Stock options are a common form of executive compensation in the technology industry, used to attract and retain talent and align their interests with those of shareholders.

Comparison to Industry Standards

• Stock option grants are a standard component of compensation packages for directors and executives in publicly traded companies, particularly in the tech sector.
• Companies like Palantir, Snowflake, and Databricks also utilize stock options as part of their compensation strategy.
• The vesting schedules and exercise prices are typically benchmarked against industry peers to ensure competitiveness and alignment with performance goals.

Stakeholder Impact

• Shareholders may view the granting of stock options positively, as it incentivizes the director to work towards increasing shareholder value.
• Employees may see it as a sign of confidence in the company's future.

Key Dates