Form 4: Nextdoor Holdings Executive Sophia Schwartz Awarded 733,333 Restricted Stock Units

Sophia Schwartz, General Counsel and Secretary of Nextdoor Holdings, Inc., was granted 733,333 restricted stock units (RSUs) on July 4, 2024, which vest quarterly over two years starting April 15, 2025.

Summary

• Sophia Schwartz, the General Counsel and Secretary of Nextdoor Holdings, Inc., received an award of 733,333 restricted stock units (RSUs) on July 4, 2024.
• These RSUs represent a contingent right to receive one share of Nextdoor's Class A Common Stock per unit.
• The RSUs will vest in equal quarterly installments over a two-year period.
• The vesting dates are January 15, April 15, July 15, and October 15 of each calendar year, beginning on April 15, 2025.
• Vesting is contingent upon Schwartz's continued service to Nextdoor on each vesting date.
• The RSUs do not have an expiration date; they will either vest and settle or be canceled before the vesting date.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, indicating stability and alignment of interests. The sentiment is neutral to slightly positive as it suggests confidence in the executive's continued contribution.

Positives

• The RSU grant aligns the executive's interests with the long-term performance of the company.
• The vesting schedule encourages continued service and commitment from the General Counsel and Secretary.

Risks

• The value of the RSUs is dependent on the future stock price of Nextdoor Holdings, Inc.
• If the reporting person leaves the company before the RSUs fully vest, they will forfeit the unvested portion.

Future Outlook

The RSUs will vest over a two-year period, contingent on continued service, suggesting an expectation of continued employment and contribution from the executive.

Industry Context

Granting RSUs is a common practice in the tech industry to incentivize and retain key executives, aligning their interests with shareholder value and company performance.

Comparison to Industry Standards

• Equity compensation is a standard practice among publicly traded companies, particularly in the tech sector, to attract and retain top talent.
• Companies like Meta, Alphabet, and Amazon routinely grant RSUs to their executives as part of their compensation packages.
• The vesting schedule of two years with quarterly installments is fairly typical, designed to encourage long-term commitment.
• The number of RSUs granted is likely determined based on the executive's role, performance, and industry benchmarks for similar positions.

Stakeholder Impact

• Shareholders may view the RSU grant as a positive incentive for the executive to drive long-term value.
• Employees may see the grant as a sign of the company's commitment to its leadership team.
• The grant has no immediate impact on customers, suppliers, or creditors.

Key Dates