Form 4: Freshworks Director Roxanne S. Austin Receives Stock Grant in Lieu of Cash Compensation

Director Roxanne S. Austin received 1,282 shares of Freshworks Inc. Class A Common Stock on October 1, 2024, as part of the company's Non-Employee Director Compensation Policy.

Summary

• Roxanne S. Austin, a director at Freshworks Inc., received 1,282 shares of Class A Common Stock on October 1, 2024.
• The shares were granted as fully-vested restricted stock in lieu of cash compensation under the company's Non-Employee Director Compensation Policy.
• This grant reflects director compensation for the third 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 October 1, 2024, rounded down to the nearest whole share.
• Following the transaction, Austin directly owns 218,090 shares of Freshworks Inc.

Sentiment

Score: 7

Explanation: The document reflects a routine director compensation event, which is generally viewed neutrally to positively as it aligns director interests with shareholders. There are no indications of negative sentiment.

Positives

• The director's decision to take stock in lieu of cash demonstrates confidence in the company's future performance.
• The grant aligns the director's interests with those of the shareholders.

Future Outlook

The document does not contain any specific forward-looking statements or guidance.

Industry Context

Director compensation in the form of stock grants is a common practice in the tech industry to align the interests of directors with those of shareholders and incentivize long-term value creation. This is a standard method of compensating board members.

Comparison to Industry Standards

• Stock grants are a typical component of director compensation packages in publicly traded companies, especially in the technology sector.
• Companies like Salesforce, Zoom, and Atlassian also utilize equity-based compensation for their board members.
• The specific amount and vesting schedule of these grants vary based on company size, performance, and industry benchmarks.

Stakeholder Impact

• The stock grant aligns the director's interests with those of the shareholders, potentially encouraging decisions that benefit the company's long-term value.
• The grant has a minor dilutive effect on existing shareholders.

Key Dates