Form 4: FIGS Inc. Executive Chair Heather Hasson Reports Stock Sale to Cover Tax Obligations

Heather Hasson, Executive Chair of FIGS, Inc., sold 1,824 shares of Class A Common Stock at $5.5375 per share to cover tax obligations related to the vesting and settlement of Restricted Stock Units (RSUs).

Summary

• On March 5, 2024, Heather Hasson, Executive Chair of FIGS, Inc., reported the sale of 1,824 shares of Class A Common Stock.
• The shares were sold at a price of $5.5375 per share.
• The sale was executed to cover tax obligations arising from the vesting and settlement of Restricted Stock Units (RSUs).
• The sale was conducted under a pre-arranged 10b5-1 trading plan established on May 9, 2023.
• Following the transaction, Hasson directly owns 497,484 shares of Class A Common Stock.
• Hasson also indirectly owns 8,338 shares through the Heather Hasson Revocable Trust and 141 shares through Hollywood Capital Partners LLC.
• Hasson also beneficially owns 2,814,480 shares of Class B Common Stock and 13,825,576 shares of Class A Common Stock underlying vested options.

Sentiment

Score: 6

Explanation: The sentiment is neutral. The transaction is a routine sale to cover tax obligations and doesn't indicate a change in the executive's confidence in the company.

Positives

• The sale was conducted under a pre-arranged 10b5-1 trading plan, indicating it was planned and not based on sudden market reactions.
• Hasson retains a significant ownership stake in FIGS, Inc., including direct and indirect holdings of Class A and Class B Common Stock, as well as vested options.

Industry Context

Sales to cover tax obligations are a common practice among executives receiving equity compensation. The use of a 10b5-1 plan suggests a proactive approach to managing these transactions and avoiding potential insider trading concerns.

Comparison to Industry Standards

• Executive stock sales to cover tax obligations are a common practice across publicly traded companies.
• The use of a 10b5-1 trading plan is a standard method for executives to sell shares without raising insider trading concerns, similar to practices at companies like Nike or Lululemon.
• The size of the sale (1,824 shares) is relatively small compared to the executive's overall holdings, which is a common scenario when covering RSU vesting taxes.

Stakeholder Impact

• The sale is unlikely to have a significant impact on shareholders, as it is a small transaction executed under a pre-arranged plan.
• Employees may see this as a routine transaction related to executive compensation.

Key Dates