Form 4: Freshworks Director Francis J. Pelzer Acquires 15,116 Shares of Class A Common Stock

Director Francis J. Pelzer of Freshworks Inc. received 15,116 shares of Class A Common Stock on July 1, 2024, as part of an annual RSU grant.

Summary

• On July 1, 2024, Francis J. Pelzer, a director of Freshworks Inc., acquired 15,116 shares of Class A Common Stock.
• This acquisition was part of an annual grant of Restricted Stock Units (RSUs) under the Issuer's Non-Employee Director Compensation Policy.
• Each RSU represents a contingent right to receive one share of Freshworks' Class A Common Stock upon settlement.
• The number of RSUs granted was calculated by dividing the applicable value of the equity by the average closing price of Freshworks' common stock over the 30 consecutive trading days immediately preceding July 1, 2024.
• The shares will vest in full on July 1, 2025, contingent on continued service as a director.

Sentiment

Score: 7

Explanation: The document reflects a standard equity grant to a director, which is generally viewed positively as it aligns interests with shareholders. There are no indications of negative news or concerns.

Positives

• The RSU grant aligns the director's interests with those of the shareholders.
• The vesting schedule encourages continued service on the board.

Future Outlook

The director's holdings will increase upon vesting of the RSUs on July 1, 2025, assuming continued service on the board.

Industry Context

Equity compensation is a common practice for directors of publicly traded companies to align their interests with those of shareholders. The vesting schedule encourages long-term commitment and performance.

Comparison to Industry Standards

• RSU grants to non-employee directors are a standard practice in publicly traded companies, including those in the software industry like Salesforce (CRM) and Atlassian (TEAM).
• The size of the grant is likely benchmarked against peer companies to attract and retain qualified board members.
• Vesting schedules, typically one year or multi-year, are also common to ensure continued service and alignment with long-term shareholder value.

Stakeholder Impact

• Shareholders: Aligns director's interests with shareholder value through equity ownership.
• Employees: Reinforces the company's commitment to attracting and retaining qualified board members.

Next Steps

• The director will continue to serve on the board.
• The RSUs will vest on July 1, 2025, assuming continued service.

Key Dates