Form 4: Clearwater Analytics Executive Scott Erickson Executes Stock Option, Sells Shares to Cover Taxes
SEC Form 4 Filing
Clearwater Analytics' Chief Revenue Officer, Scott Erickson, exercised stock options and sold shares to cover tax obligations, as detailed in a recent SEC Form 4 filing.
Summary
- Scott Erickson, Chief Revenue Officer of Clearwater Analytics Holdings, Inc., executed a stock option on March 10, 2025, acquiring 9,891 shares of Class A Common Stock at an exercise price of $4.
- Following the exercise, Erickson disposed of 5,750 shares to cover tax withholding obligations at a price of $27.6476 per share.
- Erickson also sold 4,141 shares of Class A Common Stock at a weighted average price of $27.6476, with individual trades ranging from $27.38 to $28.20.
- After these transactions, Erickson directly owns 7,902 shares of Class A Common Stock.
- The sales were executed pursuant to a pre-arranged Rule 10b5-1 trading plan adopted on November 22, 2024.
- Erickson continues to hold options to purchase 165,772 shares of Class A Common Stock.
Sentiment
Score: 6
Explanation: The document is neutral in tone, simply reporting transactions. The executive's continued stock ownership is a mildly positive signal.
Positives
- The executive's continued holding of a significant number of shares and options indicates confidence in the company's future.
Risks
- Executive stock sales can sometimes be perceived negatively by the market, although in this case, it appears to be primarily for tax obligation purposes.
Future Outlook
The document does not contain specific forward-looking statements regarding the company's future performance.
Industry Context
This filing is a routine disclosure related to executive compensation and stock transactions, common in publicly traded companies. It provides transparency into executive stock ownership and trading activities.
Comparison to Industry Standards
- Executive compensation practices, including stock options and equity grants, are common across the software and technology industry.
- Companies like Blackbaud, Enfusion, and SS&C Technologies also utilize stock options as part of their executive compensation packages.
- The use of Rule 10b5-1 trading plans is a standard practice to allow insiders to sell shares without concerns about insider trading violations.
Stakeholder Impact
- The transactions may have a minor impact on shareholders due to the change in ownership, but the overall impact is likely minimal.
Key Dates
| Date | Description |
|---|---|
| 2018-01-24 | Vesting of 120,000 shares. |
| 2019-01-16 | Vesting of 120,000 shares. |
| 2020-01-21 | Vesting of 120,000 shares. |
| 2020-11-02 | Vesting of 198,000 shares. |
| 2021-03-05 | Vesting of 21,000 shares. |
| 2022-01-01 | Vesting of 21,000 shares. |
| 2024-11-22 | Date of adoption of Rule 10b5-1 trading plan. |
| 2025-03-10 | Date of stock option exercise and share sales. |
| 2027-12-31 | Expiration date of stock options. |
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