Form 4: Clearwater Analytics Executive Scott Erickson Reports Stock Transactions Following PSU Vesting
SEC Form 4
Clearwater Analytics' Chief Revenue Officer, Scott Erickson, reports acquisition and disposal of Class A Common Stock following the vesting of performance stock units (PSUs) and subsequent sales to cover tax obligations.
Summary
- Scott Erickson, Chief Revenue Officer of Clearwater Analytics Holdings, Inc., filed a Form 4 detailing changes in beneficial ownership of the company's Class A Common Stock on February 19, 2025.
- The transactions involve the acquisition of shares through the vesting of performance stock units (PSUs) granted on September 24, 2021, February 20, 2023, and February 28, 2024.
- These PSUs vested based on Clearwater Analytics' achievement of certain revenue growth performance criteria in 2024.
- Following the vesting, Erickson sold shares to cover tax withholding obligations at a price of $30.0707 per share.
- The sales were mandated by the Issuer's election to require the satisfaction of tax withholding obligations to be funded by a 'sell to cover' transaction.
- After these transactions, Erickson directly owns 124,624 shares of Class A Common Stock.
Sentiment
Score: 6
Explanation: The document itself is neutral, simply reporting transactions. The vesting of PSUs suggests the company met performance targets, which is mildly positive. However, the stock sales have a slightly negative impact.
Positives
- The vesting of PSUs indicates that Clearwater Analytics achieved its revenue growth targets for 2024, which is a positive sign for the company's performance.
Industry Context
Executive stock transactions are a common occurrence in publicly traded companies. Monitoring these transactions can provide insights into management's confidence in the company's future performance. The 'sell to cover' practice is also standard for managing tax obligations related to equity compensation.
Key Dates
| Date | Description |
|---|---|
| 09/24/2021 | Date of PSU grant |
| 02/20/2023 | Date of PSU grant |
| 02/28/2024 | Date of PSU grant |
| 02/19/2025 | Date of transactions (PSU vesting and stock sales) |
| 02/21/2025 | Date of Form 4 signature |
Keywords
Form 4, Clearwater Analytics, Scott Erickson, Beneficial Ownership, Class A Common Stock, Performance Stock Units, PSUs, Revenue Growth, Tax Withholding, Sell to Cover
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