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

Director Sameer K. Gandhi of Freshworks Inc. reports receiving 843 shares of Class A Common Stock as compensation for the first quarter of 2025, electing to receive stock in place of cash.

Summary

• On April 1, 2025, Sameer K. Gandhi, a director at Freshworks Inc., acquired 843 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 2025.
• 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, 2025.
• Gandhi also indirectly owns a significant number of shares through various entities, including The Potomac Trust, Potomac Investments L.P. Fund 1, Accel Leaders 3 L.P., Accel Leaders 3 Entrepreneurs L.P., and Accel Leaders 3 Investors (2020) L.P.
• 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 related to director compensation, which is generally viewed neutrally. The director's existing significant ownership stake is a positive sign.

Positives

• The receipt of stock in lieu of cash compensation aligns the director's interests with those of the shareholders.
• The director's significant indirect ownership demonstrates a substantial investment in the company's success.

Industry Context

Director compensation in the form of stock grants is a common practice in the tech industry to align the interests of board members with those of shareholders. This practice encourages long-term value creation and responsible corporate governance.

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 stock grants as part of their director compensation plans.
• The size of the grant is generally determined by company size, performance, and industry benchmarks.

Stakeholder Impact

• The stock grant to the director aligns their interests with those of shareholders, potentially encouraging decisions that benefit the company's long-term value.
• Employees may view the stock grant as a positive sign of the company's commitment to its leadership.

Key Dates

Keywords

Freshworks, Sameer K. Gandhi, director compensation, Class A Common Stock, stock grant, beneficial ownership, Form 4