Form 4: Clearwater Analytics Holdings Inc. Executive Erickson Sells Shares to Cover Tax Obligations
SEC Form 4
Clearwater Analytics Holdings Inc.'s Chief Revenue Officer, Scott Stanley Erickson, disposed of shares to cover tax withholding obligations related to the vesting of Restricted Stock Units.
Summary
- On March 31, 2025, Scott Stanley Erickson, Chief Revenue Officer of Clearwater Analytics Holdings, Inc., engaged in transactions involving Class A Common Stock and Restricted Stock Units.
- Erickson disposed of 1,596 and 2,633 shares of Class A Common Stock at a price of $26.8 to cover tax withholding obligations.
- These dispositions were mandated by the issuer and do not represent discretionary transactions by Erickson.
- He also acquired 3,125 and 5,156 shares of Class A Common Stock through the vesting of Restricted Stock Units at a price of $0.00.
- Following these transactions, Erickson beneficially owns 11,954 shares of Class A Common Stock and 77,344 Restricted Stock Units.
Sentiment
Score: 6
Explanation: The document reflects routine executive stock transactions related to compensation and tax obligations, indicating a neutral sentiment.
Future Outlook
The Restricted Stock Units will continue to vest quarterly over the next four years following January 1, 2024 and January 1, 2025.
Industry Context
Executive stock transactions are a common occurrence in publicly traded companies, often related to compensation packages and tax obligations. These transactions are closely monitored by investors for insights into management's perspective on the company's performance and future prospects.
Comparison to Industry Standards
- Executive compensation packages often include stock options and restricted stock units to align management's interests with those of shareholders.
- The vesting schedules and tax withholding practices described in the document are typical for companies like Clearwater Analytics.
- Comparable companies in the software and analytics space, such as Blackbaud or SS&C Technologies, also utilize similar equity-based compensation strategies.
Stakeholder Impact
- The transactions may have a minor impact on shareholders due to the sale of shares to cover tax obligations.
- The vesting of Restricted Stock Units incentivizes the executive to contribute to the company's success.
Key Dates
| Date | Description |
|---|---|
| 01/01/2024 | Start date for vesting of 6.25% of Restricted Stock Units at the end of each 3-month period for the next 4 years. |
| 03/31/2025 | Date of transactions involving Class A Common Stock and Restricted Stock Units. |
| 01/01/2025 | Start date for vesting of 6.25% of Restricted Stock Units at the end of each 3-month period for the next 4 years. |
| 02/28/2034 | Expiration date for Restricted Stock Units. |
| 02/13/2035 | Expiration date for Restricted Stock Units. |
| 04/02/2025 | Date of signature for the Form 4 filing. |
Keywords
Clearwater Analytics Holdings, Scott Stanley Erickson, Form 4, CWAN, Restricted Stock Units, Tax Withholding, Class A Common Stock, Beneficial Ownership, Chief Revenue Officer
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