Form 4: Freshworks CFO Tyler Sloat Receives Stock Grants

Freshworks CFO Tyler Sloat was granted restricted stock units (RSUs) that will vest over the next two to four years.

Summary

• On March 1, 2024, Freshworks CFO Tyler Sloat received two grants of Restricted Stock Units (RSUs).
• The first grant was for 195,926 shares of Class A Common Stock, vesting in equal quarterly installments over four years.
• The second grant was for 186,596 shares of Class A Common Stock, vesting in equal quarterly installments over two years.
• Both grants are subject to Mr. Sloat's continued service with Freshworks.
• Following these transactions, Mr. Sloat beneficially owns 734,383 shares of Class A Common Stock directly and 920,979 shares of Class A Common Stock directly.

Sentiment

Score: 7

Explanation: The document reflects standard executive compensation practices, which is generally viewed neutrally to positively. It indicates continued investment in key personnel.

Positives

• The RSU grants align the CFO's interests with the long-term success of Freshworks.
• The vesting schedules encourage continued service and commitment from the CFO.

Risks

• The value of the RSUs is dependent on the future stock price of Freshworks.
• If Mr. Sloat leaves Freshworks before the RSUs fully vest, he will forfeit the unvested portion.

Future Outlook

The grants are part of Freshworks' overall equity compensation plan to incentivize and retain key employees.

Industry Context

Equity compensation is a common practice in the tech industry to attract and retain talent. RSU grants are a typical component of executive compensation packages.

Comparison to Industry Standards

• Companies like Salesforce, Zoom, and Atlassian also use RSU grants as part of their executive compensation packages.
• The vesting schedules and grant sizes are generally in line with industry standards for companies of Freshworks' size and stage.

Stakeholder Impact

• Shareholders may view the RSU grants as a positive sign of aligning management's interests with long-term company performance.
• Employees may see the grants as a sign of the company's commitment to its leadership team.

Key Dates