Form 4: Elastic N.V. Executive Shay Banon Reports Stock Transactions Following RSU and PSU Vesting

Chief Technology Officer Shay Banon of Elastic N.V. reports acquisition and disposal of ordinary shares related to vesting of restricted stock units and performance-based restricted stock units, including sales to cover tax obligations.

Summary

• On June 8, 2024, Shay Banon, Chief Technology Officer of Elastic N.V., acquired 10,629 ordinary shares related to performance-based RSUs (PSUs) and 21,773 ordinary shares represented by restricted stock units (RSUs).
• On June 10, 2024, Banon sold 5,260 ordinary shares at $109.89 to cover tax obligations associated with the vesting of PSUs and RSUs.
• Following these transactions, Banon directly owns 4,545,856 ordinary shares and indirectly owns 3,054,978 ordinary shares through a fund for a joint account owned by his three minor children.

Sentiment

Score: 6

Explanation: The sentiment is neutral as the transactions are routine and related to executive compensation. The sale of shares to cover taxes is a standard practice and doesn't necessarily indicate a negative outlook.

Future Outlook

One-eighth of the remaining PSUs vest in quarterly installments beginning on September 8, 2024, contingent on continued service. RSUs vest in sixteen equal quarterly installments beginning on September 8, 2024.

Industry Context

Executive stock transactions are a common occurrence in publicly traded companies, often related to equity compensation plans. These transactions are closely monitored by investors for insights into management's confidence in the company's future prospects.

Comparison to Industry Standards

• Executive compensation packages often include RSUs and PSUs to align management's interests with those of shareholders.
• Companies like Atlassian, Datadog, and MongoDB also utilize similar equity compensation structures.
• The vesting schedules and performance metrics associated with these grants vary across companies but generally aim to incentivize long-term value creation.

Stakeholder Impact

• The transactions may have a minor impact on shareholders due to the increased number of shares in the market.
• Employees may be affected by the vesting of RSUs and PSUs, which can impact morale and retention.

Key Dates