Form 4: Freshworks Executive Yamamoto Receives Stock Grant

Mika Yamamoto, Chief Customer & Marketing Officer at Freshworks, was granted 114,290 shares of Class A Common Stock in the form of Restricted Stock Units (RSUs) on March 1, 2024.

Summary

• On March 1, 2024, Mika Yamamoto, the Chief Customer & Marketing Officer of Freshworks Inc., received a grant of 114,290 shares of Class A Common Stock in the form of Restricted Stock Units (RSUs).
• These RSUs will vest in equal quarterly installments over four years, starting from March 1, 2024, contingent upon Yamamoto's continuous service with the company.
• Following this transaction, Yamamoto directly owns 491,470 shares of Freshworks Class A Common Stock.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, indicating stability and alignment of interests. It's a neutral-to-positive event.

Positives

• The grant of RSUs to a key executive like Mika Yamamoto aligns her interests with the long-term success of Freshworks.
• The vesting schedule encourages continued service and dedication from the executive.

Risks

• The value of the RSUs is tied to the performance of Freshworks' stock, which can be volatile.
• If Yamamoto leaves Freshworks before the RSUs fully vest, she will forfeit the unvested portion.

Future Outlook

The vesting of the RSUs over the next four years is contingent on Yamamoto's continued service with Freshworks.

Industry Context

Equity grants are a common practice in the tech industry to incentivize and retain key executives. The size and vesting schedule of the grant are typical for a company of Freshworks' size and stage.

Comparison to Industry Standards

• Companies like Salesforce, Zoom, and Atlassian also use RSUs extensively as part of their executive compensation packages.
• The vesting schedules are generally similar, with quarterly or annual vesting over a 3-4 year period.
• The size of the grant is comparable to grants given to executives at similar-sized SaaS companies.

Stakeholder Impact

• Shareholders may view the RSU grant positively as it incentivizes a key executive to remain with the company and contribute to its long-term success.
• Employees may see the grant as a sign of the company's commitment to its leadership team.

Key Dates