Form 4: CS Disco Executive Karen Herckis Sells Shares to Cover Tax Obligations

EVP and Chief HR Officer of CS Disco, Karen Herckis, sold 4,106 shares of common stock on August 19, 2024, to cover taxes and fees related to the release and settlement of restricted stock units.

Summary

• Karen Herckis, EVP and Chief HR Officer of CS Disco, Inc., sold 4,106 shares of common stock on August 19, 2024.
• The sale was executed to cover taxes and fees associated with the release and settlement of restricted stock units.
• The shares were sold at a weighted average price of $4.74, with individual transactions ranging from $4.71 to $4.93.
• Following the transaction, Herckis directly owns 107,320 shares of CS Disco common stock.
• A power of attorney was executed on January 17, 2024, authorizing certain individuals to act on Herckis' behalf for SEC filings related to company securities.

Sentiment

Score: 6

Explanation: The document reflects a routine transaction (sale of shares to cover taxes) and doesn't indicate any significant positive or negative sentiment. It's a neutral event from an investment perspective.

Industry Context

Form 4 filings are a routine part of insider trading activity and are required by the SEC to provide transparency into the transactions of company insiders. This transaction appears to be a standard sale to cover tax obligations, which is a common practice.

Comparison to Industry Standards

• Comparing this transaction to industry standards is difficult without knowing the specific compensation structure of CS Disco and its peers.
• However, it's common for executives at publicly traded companies, such as Palantir, Snowflake, and UiPath, to receive stock-based compensation and subsequently sell shares to cover tax liabilities.
• The size of the sale (4,106 shares) is relatively small compared to the total shares owned (107,320), suggesting it's a routine tax-related transaction rather than a significant divestment.

Stakeholder Impact

• The sale of shares by an executive could have a minor, temporary impact on the stock price, but is unlikely to have a significant long-term effect on shareholders.
• The transaction does not directly impact employees, customers, suppliers, or creditors.

Key Dates