Form 4: Freshworks CEO Dennis Woodside Reports Changes in Beneficial Ownership

Freshworks CEO Dennis Woodside reports acquisition and disposal of Class A Common Stock and Restricted Stock Units (RSUs) to satisfy tax obligations and as part of an equity incentive plan.

Summary

• On March 1, 2025, Freshworks CEO Dennis Woodside reported changes in his beneficial ownership of the company's Class A Common Stock.
• He disposed of shares to cover tax withholding obligations related to vesting RSUs granted on September 1, 2022, and March 1, 2024.
• Specifically, 54,986 shares were disposed of at $17.06 per share related to the September 2022 grant, and 15,546 and 27,809 shares were disposed of at $17.06 per share related to the March 2024 grant.
• Woodside also acquired 586,920 shares through a Restricted Stock Unit (RSU) award granted under the company's 2021 Equity Incentive Plan.
• These RSUs vest in equal quarterly installments over four years, starting March 1, 2025, contingent upon continued service.
• Following these transactions, Woodside directly owns 2,130,107 shares of Class A Common Stock and indirectly owns 278,027 shares through The Woodside 2012 Irrevocable Trust.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The RSU grant indicates confidence in the company's future, while the tax-related disposals are a normal part of executive compensation.

Positives

• The grant of 586,920 RSUs to the CEO aligns his interests with the long-term performance of the company.
• The vesting schedule of the RSUs encourages continued service and commitment from the CEO over the next four years.

Future Outlook

The CEO's RSU award vests over the next four years, indicating a long-term commitment to the company.

Industry Context

Form 4 filings are a routine part of executive compensation and provide transparency into the holdings of company insiders. The RSU grant is a common method for incentivizing executives in the tech industry.

Comparison to Industry Standards

• RSU grants are a standard component of executive compensation packages in the tech industry, similar to practices at companies like Salesforce, Zoom, and Atlassian.
• The vesting schedule of four years with quarterly installments is also a common practice to ensure long-term commitment, aligning with industry norms.

Stakeholder Impact

• The RSU grant aligns the CEO's interests with shareholders, potentially driving long-term value creation.
• Employees may view the RSU grant as a positive sign of the company's commitment to its leadership.

Key Dates