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

Kenneth Cornick, President and CFO of Clear Secure, Inc., sold 150,000 shares of Class A Common Stock and converted Class B Common Stock into Class A Common Stock, according to a recent SEC filing.

Summary

• On October 11, 2024, Kenneth L. Cornick, President and CFO of Clear Secure, Inc., sold 150,000 shares of Class A Common Stock at a weighted average price of $34.08.
• The sale was executed under a pre-arranged Rule 10b5-1 trading plan adopted on March 12, 2024.
• On October 15, 2024, 150,000 shares of Class B Common Stock were converted into Class A Common Stock on a one-for-one basis.
• Following these transactions, Mr. Cornick directly holds no shares of Class A Common Stock.
• Mr. Cornick indirectly holds 5,266,444 shares of Class D Common Stock, 275,447 shares of Class B Common Stock, and 125,447 shares of Class B Common Stock through Alclear Investments II, LLC, where he is the sole manager.
• 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 pursuant to the Exchange Agreement.

Sentiment

Score: 5

Explanation: The document is a standard SEC filing detailing insider trading activity, which is neutral in sentiment.

Industry Context

This filing is a routine disclosure of insider transactions and provides transparency to the market regarding the trading activities of company executives.

Comparison to Industry Standards

• Insider trading activity is common and closely monitored across publicly traded companies.
• The filing is consistent with SEC regulations requiring timely disclosure of transactions by company insiders.
• Comparable companies such as Global Entry and TSA PreCheck providers also have similar insider trading reporting requirements.

Stakeholder Impact

• The stock sale by a key executive could be perceived negatively by some shareholders, although it was conducted under a pre-arranged trading plan.
• The conversion of Class B shares to Class A shares has minimal impact on stakeholders.

Key Dates