Form 4: DigitalOcean Director Merritt Christopher Acquires Restricted Stock Units

Director Merritt Christopher acquired 345 restricted stock units (RSUs) of DigitalOcean Holdings, Inc. on March 31, 2025, in lieu of quarterly retainer fees.

Summary

• On March 31, 2025, Merritt Christopher, a director of DigitalOcean Holdings, Inc., acquired 345 restricted stock units (RSUs).
• The RSUs were granted in lieu of quarterly retainer fees, as per the issuer's non-employee director compensation policy.
• The price per share used to calculate the number of RSUs was $36.13, based on the average closing price of DigitalOcean's common stock on the NYSE for the 10 trading days prior to and ending on the date of grant.
• The RSUs are fully vested as of the date of grant, each representing a contingent right to receive one share of DigitalOcean common stock.
• Following the transaction, Merritt Christopher beneficially owns 23,696 shares of DigitalOcean common stock.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, which is generally viewed neutrally to positively as it aligns director interests with shareholders. The immediate vesting is a slight positive.

Positives

• The acquisition of RSUs by a director signals confidence in the company's future.
• The immediate vesting of the RSUs aligns the director's interests with those of the shareholders.

Industry Context

Director compensation through equity grants is a common practice in the tech industry to align management's interests with shareholder value. The amount granted appears consistent with typical director compensation packages.

Comparison to Industry Standards

• Director compensation packages in comparable cloud service companies often include a mix of cash retainers and equity grants.
• Companies like Cloudflare and Fastly also utilize RSUs as part of their director compensation, with grant sizes varying based on company size and performance.
• The immediate vesting of RSUs is less common than graded vesting schedules, which typically vest over a period of 1-3 years.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders as it aligns the director's interests with the company's long-term success.

Key Dates

Keywords

DigitalOcean, DOCN, restricted stock units, RSUs, director compensation, Merritt Christopher, beneficial ownership, Form 4