Form 4: Clearwater Analytics Executive Scott Erickson Reports Stock Transactions
SEC Form 4 Filing
Scott Erickson, Chief Revenue Officer of Clearwater Analytics, reports the vesting and subsequent tax withholding of restricted stock units.
Summary
- On December 31, 2024, Scott Erickson, Chief Revenue Officer of Clearwater Analytics Holdings, Inc., acquired 3,125 shares of Class A Common Stock upon the vesting of Restricted Stock Units and disposed of 1,596 shares to cover tax withholding obligations at a price of $27.52.
- On January 1, 2025, Erickson acquired 62,500 shares, disposed of 26,802 shares for tax obligations at $27.52, acquired 31,423 shares, and disposed of 16,042 shares for tax obligations at $27.52.
- Following these transactions, Erickson directly owns 58,981 shares of Class A Common Stock and holds derivative securities including 37,500 Restricted Stock Units granted on February 28, 2024, 125,000 Restricted Stock Units granted on February 20, 2023, and 31,424 Restricted Stock Units granted on September 24, 2021.
Sentiment
Score: 7
Explanation: The sentiment is neutral to slightly positive. The transactions are routine and expected, reflecting standard compensation practices. The vesting of RSUs suggests confidence in the company's future performance.
Positives
- The vesting of RSUs indicates a continued alignment of the executive's interests with the company's performance.
Industry Context
This Form 4 filing is a routine disclosure required by the SEC for corporate insiders, providing transparency into their transactions in the company's stock. It is typical for executives to receive stock-based compensation and subsequently sell shares to cover tax obligations.
Comparison to Industry Standards
- Stock-based compensation is a common practice in the tech industry to align executive incentives with shareholder value.
- Companies like Salesforce, Workday, and ServiceNow also utilize RSUs as part of their compensation packages.
- The vesting schedules and tax withholding practices observed in this filing are generally consistent with industry norms.
Stakeholder Impact
- The transactions have a minimal direct impact on stakeholders, as they are related to executive compensation and tax obligations.
- The transparency provided by the Form 4 filing ensures that stakeholders are informed about insider transactions.
Key Dates
| Date | Description |
|---|---|
| 01/01/2022 | Vesting Period Commencement Date for 31,423 RSUs, vesting in 25% installments on each of the first four anniversaries. |
| 01/01/2023 | Vesting Period Commencement Date for 62,500 RSUs, vesting in 25% installments on each of the first four anniversaries. |
| 02/20/2023 | Grant date for 125,000 RSUs. |
| 02/28/2024 | Grant date for 37,500 RSUs. |
| 12/31/2024 | Transaction date: Acquisition of 3,125 shares via RSU vesting and disposition of 1,596 shares for tax withholding. |
| 01/01/2025 | Transaction date: Acquisition of 62,500 shares via RSU vesting and disposition of 26,802 shares for tax withholding; Acquisition of 31,423 shares via RSU vesting and disposition of 16,042 shares for tax withholding. |
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