Form 4: Freshworks Director Sameer K. Gandhi Receives Stock Grant in Lieu of Cash Compensation

Director Sameer K. Gandhi of Freshworks Inc. received 1,163 shares of Class A Common Stock as compensation for the third quarter of 2024, electing to receive stock in place of cash.

Summary

• On October 1, 2024, Sameer K. Gandhi, a director of Freshworks Inc., acquired 1,163 shares of Class A Common Stock.
• This acquisition was a grant of fully-vested restricted stock received in lieu of cash compensation for the third quarter of 2024 under the company's Non-Employee Director Compensation Policy.
• 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 trading days preceding October 1, 2024.
• Gandhi also indirectly owns shares through various entities, including The Potomac Trust (349,114 shares), Potomac Investments L.P. Fund 1 (344,219 shares), Accel Leaders 3 L.P. (3,112,212 shares), Accel Leaders 3 Entrepreneurs L.P. (128,846 shares), and Accel Leaders 3 Investors (2020) L.P. (185,733 shares).
• Gandhi disclaims beneficial ownership of these indirectly held shares except to the extent of his pecuniary interest.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The director accepting stock in lieu of cash suggests confidence, but it's a routine transaction.

Positives

• The director's decision to take stock in lieu of cash may signal confidence in the company's future performance.

Industry Context

This type of equity compensation is common for directors of publicly traded companies, aligning their interests with those of shareholders.

Comparison to Industry Standards

• Director compensation packages vary across the software industry, but equity grants are a standard component.
• Companies like Salesforce, Atlassian, and Zoom also utilize stock options and restricted stock units as part of their director compensation plans.
• The specific value and structure of these grants depend on factors such as company size, performance, and board responsibilities.

Stakeholder Impact

• The transaction has a minimal direct impact on stakeholders.
• It reinforces the alignment of director interests with shareholder value.

Key Dates