Form 4: C3.ai Director Michael McCaffery Acquires Stock Options

Director Michael McCaffery acquired stock options in C3.ai, Inc. on October 2, 2024.

Summary

• Michael G McCaffery, a director of C3.ai, Inc., acquired stock options on October 2, 2024.
• The options grant the right to buy 28,032 shares of Class A Common Stock at an exercise price of $22.89.
• The options vest quarterly, starting October 2, 2024, provided McCaffery remains a director and attends board meetings.
• If McCaffery misses a board meeting, the vesting of 5% of the shares will be suspended and may vest only after the fifth anniversary of the vesting commencement date if attendance requirements are met in subsequent periods.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction of stock options, indicating a positive alignment of interests between the director and the company. It's a standard practice, suggesting stability and confidence.

Positives

• The acquisition of stock options by a director signals confidence in the company's future performance.
• The vesting schedule incentivizes continued service and active participation on the board.

Risks

• The vesting schedule is contingent on McCaffery's continued service as a director and attendance at board meetings, creating a potential risk if these conditions are not met.

Future Outlook

The document does not contain explicit forward-looking statements, but the vesting schedule implies an expectation of continued service by the director.

Industry Context

Stock option grants are a common form of executive compensation in the technology industry, aligning the interests of management and shareholders.

Comparison to Industry Standards

• Stock option grants are a typical component of compensation packages for directors in publicly traded technology companies like C3.ai.
• Companies such as Palantir, Snowflake, and Databricks also utilize stock options to incentivize their executives and board members.
• The vesting schedules and exercise prices are generally structured to align with long-term company performance and shareholder value creation.

Stakeholder Impact

• The stock option grant aligns the director's interests with those of shareholders, incentivizing actions that increase shareholder value.

Key Dates