Form 4: Datadog General Counsel Sells Shares to Cover Tax Obligations
SEC Form 4 Filing
Datadog's General Counsel, Kerry Acocella, sold 3,175 shares of Class A Common Stock to cover tax obligations related to vesting restricted stock units.
Summary
- Kerry Acocella, General Counsel and Secretary of Datadog, Inc., sold 3,175 shares of Class A Common Stock on December 2, 2024.
- The sale was executed at a price of $152.1401 per share.
- This transaction was to cover tax withholding obligations and brokerage fees associated with the vesting of restricted stock units and performance-based restricted stock units.
- Following the transaction, Acocella directly owns 71,246 shares of Datadog Class A Common Stock.
Sentiment
Score: 7
Explanation: The document reflects a routine transaction for tax purposes, which is neither positive nor negative for the company's overall performance. It is a neutral event from an investment perspective.
Management Comments
- The Reporting Person was required by the Issuer to sell only the number of shares of common stock necessary to cover applicable tax withholding obligations realized upon the vesting of restricted stock units and performance-based restricted stock units, as well as any related brokerage commission fees.
Industry Context
This is a routine transaction for company executives who receive stock-based compensation. It is common for executives to sell shares to cover tax liabilities when stock options or restricted stock units vest.
Comparison to Industry Standards
- Sales of shares by executives to cover tax obligations are a common practice across the technology industry.
- Many companies use restricted stock units as part of their compensation packages, leading to similar transactions by executives at other firms such as MongoDB, Snowflake, and CrowdStrike.
Stakeholder Impact
- The sale has a minimal impact on shareholders as it is a routine transaction for tax purposes.
Key Dates
| Date | Description |
|---|---|
| 12/02/2024 | Date of the stock sale transaction. |
| 12/04/2024 | Date of signature on the SEC Form 4 filing. |
Keywords
Datadog, DDOG, SEC Form 4, insider trading, stock sale, Kerry Acocella, General Counsel, restricted stock units, tax obligations
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