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

Director Sameer K. Gandhi of Freshworks Inc. received a stock grant in lieu of cash compensation for the first quarter of 2024, according to a recent SEC filing.

Summary

• On April 1, 2024, Sameer K. Gandhi, a director of Freshworks Inc., acquired 697 shares of Class A Common Stock.
• This acquisition was a grant of fully-vested restricted stock received in lieu of cash compensation under the company's Non-Employee Director Compensation Policy for the first 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 April 1, 2024.
• Gandhi also indirectly owns shares through various entities, including The Potomac Trust (287,633 shares), Potomac Investments L.P. Fund 1 (207,010 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 document reflects a routine transaction (stock grant in lieu of cash compensation) for a director, indicating a stable and expected practice. The director's significant indirect holdings suggest confidence in the company's future.

Positives

• The grant of shares in lieu of cash compensation aligns the director's interests with those of the shareholders.
• The director has a significant investment in the company through direct and indirect holdings.

Industry Context

This type of equity compensation is common for directors of publicly traded companies, aligning their interests with shareholders and incentivizing them to focus on long-term value creation.

Comparison to Industry Standards

• Equity compensation for board members is a standard practice across the software industry, with companies like Salesforce, Atlassian, and Zoom offering similar packages to attract and retain talent.
• The specific amount and structure of the equity grants vary based on company size, performance, and individual contributions.

Stakeholder Impact

• The stock grant to the director aligns his interests with those of shareholders, potentially leading to decisions that benefit the company's long-term value.
• The director's significant indirect holdings demonstrate confidence in the company, which can positively influence investor sentiment.

Key Dates