Form 4: DigitalOcean Director Warren J. Adelman Acquires 550 Shares of Common Stock

Warren J. Adelman, a director at DigitalOcean Holdings, Inc., acquired 550 shares of common stock on December 31, 2024, through the grant of restricted stock units (RSUs).

Summary

• On December 31, 2024, Warren J. Adelman, a director of DigitalOcean Holdings, Inc., acquired 550 shares of common stock.
• The acquisition was made through the grant of restricted stock units (RSUs).
• Each RSU represents a contingent right to receive one share of DigitalOcean common stock.
• The RSUs were granted in lieu of quarterly retainer fees, as per the Issuer's non-employee director compensation policy.
• The number of RSUs was calculated by dividing $19,500 by $35.41, which is the average closing price of DigitalOcean's common stock on the NYSE for the 10 trading days prior to and ending on the grant date.
• The shares underlying these RSUs are fully vested as of the date of grant.
• Following the transaction, Adelman directly owns 60,586 shares of DigitalOcean common stock.

Sentiment

Score: 6

Explanation: The sentiment is neutral. It's a standard disclosure of a director's stock acquisition, which doesn't inherently indicate positive or negative sentiment about the company's performance.

Positives

• The acquisition of shares by a director can be seen as a positive signal, indicating confidence in the company's future prospects.
• The use of RSUs in lieu of cash compensation can help conserve the company's cash reserves.

Industry Context

This Form 4 filing is a routine disclosure related to insider transactions and is common for publicly traded companies. It provides transparency into the ownership changes of company insiders.

Comparison to Industry Standards

• Director compensation via RSUs is a common practice among publicly traded companies, particularly in the tech industry.
• Companies like Amazon, Microsoft, and Google also use RSUs as part of their compensation packages for directors and employees.
• The vesting schedules and valuation methods for RSUs can vary, but the general principle of aligning director interests with shareholder value is consistent across the industry.

Stakeholder Impact

• The transaction has a minimal direct impact on stakeholders.
• It provides transparency to shareholders regarding director compensation and ownership.

Key Dates