Form 4: Clear Secure Inc. Executive Kenneth Cornick Executes Stock Sale and Conversion

Kenneth Cornick, President & CFO of Clear Secure, Inc., sold 250,000 shares of Class A Common Stock and converted Class B Common Stock into Class A Common Stock, according to a recent SEC filing.

Summary

• Kenneth L. Cornick, President & CFO of Clear Secure, Inc., filed a Form 4 with the SEC detailing changes in his beneficial ownership of the company's stock.
• On September 17, 2024, Cornick sold 250,000 shares of Class A Common Stock at a weighted average price of $32.3, with individual transactions ranging from $32.00 to $32.61.
• The sale was executed automatically under a pre-existing Rule 10b5-1 trading plan adopted on March 12, 2024.
• On September 19, 2024, Cornick converted 250,000 shares of Class B Common Stock into Class A Common Stock on a one-for-one basis.
• Following these transactions, Cornick directly owns no shares of Class A Common Stock.
• Cornick indirectly owns 5,566,444 shares of Class D Common Stock, 375,447 shares of Class B Common Stock, and 125,447 shares of Class A Common Stock through Alclear Investments II, LLC, which he controls.
• The Class D Common Stock has 20 votes per share but no economic rights and is issued in an equal amount to the number of non-voting common units of Alclear Holdings, LLC held.
• Common Units, together with a corresponding number of shares of Class D Common Stock, were exchanged for Class B Common Stock on a one-for-one basis, according to the Exchange Agreement dated June 29, 2021.

Sentiment

Score: 5

Explanation: The sentiment is neutral as the filing primarily reports routine stock transactions by an executive under a pre-existing trading plan. There is no indication of positive or negative implications for the company's performance.

Industry Context

This filing is a routine disclosure of stock transactions by a company executive and provides insight into their investment decisions and holdings in the company. It is common for executives to have pre-arranged trading plans (Rule 10b5-1) to avoid accusations of insider trading.

Comparison to Industry Standards

• Executive stock sales are a common occurrence in publicly traded companies.
• The use of Rule 10b5-1 trading plans is a standard practice to ensure compliance with insider trading regulations.
• Comparing Cornick's transactions to those of executives at similar companies (e.g., identity verification or security technology firms) would provide a better understanding of whether these actions are typical or unusual.

Key Dates