Form 4: Freshworks Executive Acquires 50,107 Shares of Class A Common Stock

Mika Yamamoto, Chief Customer & Marketing Officer at Freshworks Inc., acquired 50,107 shares of Class A Common Stock on February 13, 2025, as part of a performance-based restricted stock unit (PRSU) award.

Summary

• On February 13, 2025, Mika Yamamoto, the Chief Customer & Marketing Officer of Freshworks Inc., acquired 50,107 shares of Class A Common Stock.
• The acquisition was due to the vesting of performance-based restricted stock units (PRSUs).
• These PRSUs were earned upon the certification of achievement of certain performance criteria by the Issuer's compensation committee.
• One-third of the PRSUs will vest on March 1, 2025, and the remaining two-thirds will vest in equal quarterly installments thereafter.
• The vesting is subject to Yamamoto's continued service with Freshworks.
• Following the transaction, Yamamoto directly owns 447,497 shares of Class A Common Stock.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The vesting of PRSUs suggests that performance targets are being met, which is a positive indicator. The increased ownership aligns the executive's interests with shareholders.

Positives

• The vesting of PRSUs indicates that performance criteria set by Freshworks' compensation committee have been met.
• Yamamoto's increased stake in the company aligns her interests with those of other shareholders.

Future Outlook

One-third of the PRSUs will vest on March 1, 2025, and the remaining two-thirds shall vest in equal quarterly installments thereafter, subject to the Reporting Person's continued service with the Issuer.

Industry Context

Executive stock awards are a common practice in the tech industry to incentivize performance and align management's interests with shareholders. The vesting schedule and performance criteria are designed to retain key personnel and drive company growth.

Comparison to Industry Standards

• Stock-based compensation is a standard practice among publicly traded tech companies like Salesforce, Zoom, and Atlassian.
• The vesting schedules for restricted stock units (RSUs) and PRSUs typically range from three to five years, with vesting occurring quarterly or annually.
• Performance metrics for PRSUs often include revenue growth, customer acquisition, and product development milestones.

Stakeholder Impact

• Shareholders may view the vesting of PRSUs as a positive sign, indicating that the company is achieving its performance goals.
• Employees may be motivated by the fact that executives are being rewarded for their contributions to the company's success.

Key Dates