Form 4: Freshworks Director Barry L. Padgett Reports Stock Transactions
SEC Form 4 Filing
Director Barry L. Padgett reports transactions involving Freshworks Inc. stock, including the vesting and conversion of restricted stock units.
Summary
- On September 28, 2024, Barry L. Padgett, a director of Freshworks Inc., reported transactions related to the company's stock.
- These transactions involved the vesting of 1,560 Restricted Stock Units (RSUs) which converted into Class B Common Stock.
- Padgett also converted 1,560 shares of Class B Common Stock into Class A Common Stock.
- Following these transactions, Padgett directly owns 17,190 shares of Class B Common Stock and 76,559 shares of Class A Common Stock.
- The RSUs vest in monthly installments over 48 months following August 28, 2021, contingent on continued service and a qualifying event like an IPO or sale within 10 years of the grant date.
Sentiment
Score: 5
Explanation: The document is a standard regulatory filing detailing stock transactions, indicating a neutral sentiment.
Industry Context
This filing is a routine disclosure related to stock-based compensation for a company director, which is a common practice in publicly traded companies like Freshworks to align management's interests with those of shareholders.
Comparison to Industry Standards
- Stock-based compensation is a standard practice among tech companies like Freshworks, similar to companies such as Salesforce, Zoom, and Atlassian.
- Directors often receive equity grants that vest over several years to incentivize long-term performance, aligning with industry norms.
- The vesting schedule of 48 months is typical, mirroring practices seen in other SaaS companies.
- Reporting these transactions via Form 4 is a standard regulatory requirement, ensuring transparency in insider trading.
Stakeholder Impact
- The transactions have a minor impact on shareholders as they reflect standard executive compensation practices.
- Employees may be indirectly affected as these transactions reflect the company's compensation strategy.
Key Dates
| Date | Description |
|---|---|
| 2021-08-28 | Start date for RSU vesting, with 1/48th of the shares vesting monthly over 48 months. |
| 2024-09-28 | Date of the reported stock transactions, including RSU vesting and conversion of Class B to Class A Common Stock. |
| 2031-08-04 | Expiration date for the Restricted Stock Units. |
| 2024-09-30 | Date of signature on the Form 4 filing. |
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