Form 4: Datadog Executive Acquires Shares Following Performance-Based Vesting

David Galloreese, Chief People Officer at Datadog, acquired 39,080 shares of Class A Common Stock on February 25, 2025, following the vesting of performance-based restricted stock units (PSUs).

Summary

• On February 25, 2025, David Galloreese, the Chief People Officer of Datadog, acquired 39,080 shares of Class A Common Stock.
• This acquisition resulted from the vesting of performance-based restricted stock units (PSUs) granted on July 1, 2024.
• The vesting of these PSUs was contingent upon both performance and service-based criteria.
• The earned PSUs will vest as to service as to 1/4 of the shares on March 1, 2025 and 1/12 of the remaining shares on each June 1, September 1, December 1 and March 1 thereafter, subject to continuous service.
• Following the transaction, Galloreese directly owns 72,970 shares of Datadog's Class A Common Stock.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The vesting of PSUs indicates that performance goals were met, which is a positive sign. However, it's a routine transaction related to executive compensation.

Positives

• The vesting of performance-based restricted stock units indicates that performance targets were met, which could be viewed positively.

Future Outlook

The remaining PSUs will continue to vest based on the service schedule, contingent on the Reporting Person's continuous service with Datadog.

Industry Context

Equity compensation is a common practice in the tech industry to incentivize and retain key personnel. The vesting of performance-based units suggests the company is meeting its internal goals.

Comparison to Industry Standards

• Datadog's use of performance-based restricted stock units (PSUs) aligns with compensation practices at companies like Snowflake, CrowdStrike, and Okta, which also utilize equity grants with vesting schedules tied to both performance and service.
• These companies often structure PSU vesting around key performance indicators (KPIs) such as revenue growth, customer acquisition, or product development milestones.
• The specific vesting terms and performance targets vary, but the underlying principle of aligning executive compensation with company performance is consistent across the industry.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders as it indicates that performance goals were achieved.
• It incentivizes the Chief People Officer to remain with the company and continue to contribute to its success.

Next Steps

• The remaining PSUs will continue to vest according to the service-based schedule, contingent on continuous service.

Key Dates