Form 4: Clearwater Analytics CFO James Cox Reports Stock Transactions Following PSU Vesting

Clearwater Analytics CFO James Cox reports acquisition and disposition of Class A Common Stock related to the vesting of performance stock units (PSUs) and restricted stock units (RSUs).

Summary

• On February 28, 2024, James Cox, CFO of Clearwater Analytics Holdings, Inc., reported transactions involving Class A Common Stock.
• These transactions include the acquisition of 102,893 shares and 70,893 shares of Class A Common Stock from the vesting of performance stock units (PSUs) issued on February 20, 2023, and September 24, 2021, respectively.
• The PSUs vested based on Clearwater Analytics' achievement of certain revenue growth performance criteria in 2023.
• Cox also disposed of 52,147 shares and 35,929 shares of Class A Common Stock to cover tax withholding obligations related to the vesting and settlement of the PSUs at a price of $19.44 per share.
• Additionally, Cox acquired 50,000 restricted stock units (RSUs) on February 28, 2024, which vest in increments of 6.25% at the end of each 3-month period for the next 4 years following January 1, 2024.
• Following these transactions, Cox beneficially owns 234,421 shares of Class A Common Stock.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The vesting of PSUs suggests the company met its revenue growth targets, which is a positive sign. The transactions themselves are routine and expected.

Positives

• The vesting of PSUs indicates that Clearwater Analytics achieved certain revenue growth targets in 2023.
• The grant of 50,000 RSUs suggests continued alignment of executive compensation with company performance.

Future Outlook

The unvested portion of the RSUs granted on February 28, 2024, will vest 6.25% at the end of each 3-month period for the next 4 years following January 1, 2024.

Industry Context

Form 4 filings are a routine part of executive compensation and provide transparency into insider transactions. The vesting of PSUs tied to revenue growth aligns with industry trends of incentivizing executives based on company performance.

Comparison to Industry Standards

• Clearwater Analytics' use of PSUs and RSUs is a common practice among publicly traded companies to align executive compensation with shareholder value.
• Companies like Black Knight Financial Services and Envestnet also utilize similar equity-based compensation plans for their executives.
• The vesting schedules and performance metrics associated with these plans vary depending on the company's specific goals and industry benchmarks.

Stakeholder Impact

• The vesting of PSUs and RSUs aligns management's interests with those of shareholders, incentivizing them to drive company performance.
• The transactions have a minimal direct impact on employees, customers, suppliers, or creditors.

Key Dates