Form 4: Clear Secure Inc. President and CFO Kenneth L. Cornick Executes Stock Sale Under 10b5-1 Plan

Kenneth L. Cornick, President and CFO of Clear Secure, Inc., sold 227,021 shares of Class A Common Stock under a pre-arranged Rule 10b5-1 trading plan.

Summary

• On September 9, 2024, Kenneth L. Cornick, the President and CFO of Clear Secure, Inc., sold 227,021 shares of Class A Common Stock at a weighted average price of $31.05.
• The sale was executed under a pre-arranged Rule 10b5-1 trading plan adopted on March 12, 2024.
• The shares were sold in multiple transactions ranging from $31.00 to $31.30.
• Shares of Class B common stock were converted into Class A common stock on a one-for-one basis to settle the sale transaction.
• Cornick indirectly owns shares through Alclear Investments II, LLC, where he is the sole manager with dispositive and voting control.
• Class D Common Stock has 20 votes per share but no economic rights and are 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.

Sentiment

Score: 5

Explanation: The sentiment is neutral as the filing simply reports a routine stock sale under a pre-arranged 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 insider transactions and provides transparency to the market regarding the trading activities of company executives. It is a standard practice for executives to utilize 10b5-1 trading plans to avoid accusations of insider trading.

Comparison to Industry Standards

• Form 4 filings are standard practice for publicly traded companies and their insiders.
• The use of a 10b5-1 trading plan is a common method for corporate insiders to sell shares without raising concerns about insider trading, similar to practices seen at companies like Palantir and Snowflake where executives regularly execute pre-planned stock sales.

Stakeholder Impact

• The sale of shares by a key executive could be perceived negatively by some shareholders, but the use of a 10b5-1 plan mitigates concerns about insider trading.

Key Dates