Form 4: Elastic Director Auvil Granted 2,663 RSUs

Elastic N.V. Director Paul R. Auvil III received a grant of 2,663 restricted stock units, which are set to vest by September 30, 2026.

Summary

• Paul R. Auvil III, a Director of Elastic N.V. (ESTC), acquired 2,663 Ordinary Shares in the form of Restricted Stock Units (RSUs).
• The transaction date for this grant was September 30, 2025.
• The acquisition price for these RSUs was $0, indicating they are compensation.
• Following this transaction, Mr. Auvil beneficially owns a total of 27,956 Ordinary Shares.
• These RSUs will vest in full on the earlier of the day prior to Elastic's next annual general meeting of shareholders or September 30, 2026.

Sentiment

Score: 6

Explanation: Slightly positive as it represents routine director compensation aligning interests with shareholders, with no negative implications.

Positives

• The grant of Restricted Stock Units (RSUs) to a director aligns their financial interests with those of long-term shareholders.
• Equity compensation is a standard practice to incentivize directors and retain talent within the company.

Negatives

• No direct negatives are apparent from this routine insider transaction filing.

Risks

• The ultimate value of the RSUs is subject to the future market price fluctuations of Elastic N.V. Ordinary Shares.
• Non-vested RSUs carry the risk of forfeiture if vesting conditions are not met, such as termination of service prior to the vesting date.

Future Outlook

The granted Restricted Stock Units are scheduled to vest by September 30, 2026, or earlier, contingent on the date of the next annual general meeting of shareholders, indicating future share ownership for the director.

Industry Context

Granting equity, such as Restricted Stock Units, is a common practice in the technology industry and for publicly traded companies to compensate non-employee directors, aligning their financial interests with shareholder value creation.

Comparison to Industry Standards

• The use of Restricted Stock Units (RSUs) for director compensation is a standard practice across many industries, including technology, as it provides a direct link between director incentives and company performance.
• The vesting schedule, typically over one to three years or tied to annual meetings, is also consistent with common corporate governance practices for retaining and incentivizing board members.

Related Party Transactions

• The acquisition of 2,663 Restricted Stock Units by Paul R. Auvil III, a Director of Elastic N.V., constitutes a related party transaction as it involves compensation from the company to a member of its board.

Stakeholder Impact

• Shareholders: The grant aligns the director's financial interests with shareholder value, potentially leading to more aligned decision-making. It also represents a minor dilution upon vesting, which is standard for equity compensation.

Next Steps

• Vesting of the 2,663 Restricted Stock Units on the earlier of the day prior to the next annual general meeting or September 30, 2026.

Key Dates

Keywords

Elastic N.V., ESTC, Paul R. Auvil III, Form 4, Insider Transaction, Restricted Stock Units, RSU, Director Compensation, Equity Grant, Beneficial Ownership