Form 4: Definitive Healthcare Corp. CFO Reports Changes in Beneficial Ownership

Richard Douglas Booth, CFO of Definitive Healthcare Corp., reports transactions involving Class A Common Stock related to vesting of performance-based restricted stock units and tax withholding obligations.

Summary

• Richard Douglas Booth, the Chief Financial Officer of Definitive Healthcare Corp., filed a Form 4 detailing changes in his beneficial ownership of the company's Class A Common Stock.
• On January 21, 2025, Booth acquired 107,480 shares of Class A Common Stock related to performance-based restricted stock units (PSUs) at a price of $0.
• On the same date, 10,192 shares were disposed of to cover tax withholding obligations at a price of $4.41 per share, resulting in a holding of 688,546.173 shares.
• On February 1, 2025, an additional 27,080 shares were disposed of to cover tax withholding obligations at a price of $4.86 per share, resulting in a holding of 661,466.173 shares.
• The PSUs vest in three equal installments: 1/3rd on January 21, 2025, 1/3rd on February 1, 2026, and the remaining 1/3rd on February 1, 2027, contingent upon continued service with the Issuer.

Sentiment

Score: 6

Explanation: The sentiment is neutral as the filing primarily reflects routine transactions related to executive compensation and tax obligations. The vesting of PSUs is a positive sign, but the tax-related disposals are a standard occurrence.

Positives

• The vesting of performance-based restricted stock units indicates that the company has met certain performance criteria as determined by the compensation committee.

Future Outlook

The remaining PSUs will vest in two installments on February 1, 2026, and February 1, 2027, contingent upon the Reporting Person's continued service.

Industry Context

Form 4 filings are routine disclosures required by the SEC to provide transparency into the transactions of company insiders, allowing investors to track ownership changes and potential alignment of interests.

Comparison to Industry Standards

• Comparing Definitive Healthcare's equity incentive plan to similar healthcare data and analytics companies like Veeva Systems or IQVIA, the vesting schedules and performance-based metrics are fairly standard.
• Tax withholding practices are also consistent across the industry, with companies typically withholding shares to cover employee tax obligations upon vesting of equity awards.
• The size of the PSU grants and the vesting schedules are generally aligned with industry norms for executive compensation in similarly sized companies.

Stakeholder Impact

• The transactions have a minor impact on shareholders as they reflect routine executive compensation adjustments.
• Employees may be impacted by similar tax withholding practices on their equity awards.

Key Dates