Form 4: Freshworks Director Receives Stock Grant in Lieu of Cash Compensation

Director Johanna Flower received 651 shares of Class A Common Stock and 1,560 Restricted Stock Units (RSUs) in Freshworks Inc., as part of her compensation.

Summary

• Johanna Flower, a director at Freshworks Inc., received 651 shares of Class A Common Stock as compensation in lieu of cash.
• This stock grant was for her service as a director during the fourth quarter of 2024.
• The number of shares was determined by dividing the value of the equity by the average closing price of the company's stock over the 30 trading days before January 1, 2025.
• Additionally, Ms. Flower received 1,560 Restricted Stock Units (RSUs), each representing a contingent right to receive one share of Class B Common Stock.
• These RSUs vest monthly over 48 months from September 2, 2021, subject to continued service and a qualifying event like an IPO or sale event within 10 years of the grant date.
• The Class B Common Stock will convert to Class A Common Stock upon sale or transfer, or at the option of the holder.

Sentiment

Score: 7

Explanation: The document reflects a routine compensation event, which is generally positive for aligning director interests with shareholders. There are no indications of any negative issues.

Positives

• The grant of stock aligns the director's interests with those of the shareholders.
• The vesting schedule of the RSUs encourages long-term commitment from the director.

Industry Context

Stock grants and RSU awards are common forms of compensation for directors and executives in publicly traded companies, aligning their interests with shareholders and incentivizing long-term performance.

Comparison to Industry Standards

• The use of stock grants and RSUs for director compensation is a standard practice among publicly traded technology companies.
• Many companies use similar vesting schedules for RSUs, typically over a period of 3 to 5 years.
• The specific terms of the grant, such as the vesting schedule and conversion rights, are generally consistent with industry norms.

Stakeholder Impact

• The stock grant and RSU award may have a minor dilutive effect on existing shareholders.
• The vesting schedule of the RSUs encourages long-term commitment from the director, which is beneficial for shareholders.

Key Dates

Keywords

Freshworks, Director Compensation, Stock Grant, Restricted Stock Units, RSU, Class A Common Stock, Class B Common Stock, Insider Transaction, Form 4