Form 4: Freshworks Director Roxanne S. Austin Acquires Shares in Lieu of Cash Compensation

Director Roxanne S. Austin acquired 915 shares of Freshworks Inc. Class A Common Stock on January 2, 2025, in lieu of cash compensation under the company's Non-Employee Director Compensation Policy.

Summary

• On January 2, 2025, Roxanne S. Austin, a director of Freshworks Inc., acquired 915 shares of Class A Common Stock.
• The acquisition was made in lieu of cash compensation under the Issuer's Non-Employee Director Compensation Policy.
• The shares were granted as fully-vested restricted stock representing director compensation for the fourth quarter of 2024.
• The number of shares 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 January 1, 2025, rounded down to the nearest whole share.
• Following the transaction, Austin directly owns 200,096 shares of Freshworks Inc. Class A Common Stock.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The director taking equity instead of cash is a good sign, but it's a routine transaction.

Positives

• The director's decision to take equity in lieu of cash demonstrates confidence in the company's future prospects.

Industry Context

Director compensation in the form of equity is a common practice in the tech industry to align the interests of directors with those of shareholders.

Comparison to Industry Standards

• Many tech companies, such as Salesforce and Atlassian, use equity-based compensation for their directors.
• The amount of equity granted to directors varies depending on the company's size, performance, and compensation policies.
• The practice of granting restricted stock units (RSUs) that vest over time is also common, but in this case, the shares were fully vested upon grant.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders as it aligns the director's interests with the company's long-term success.

Key Dates