Form 4: Okta CFO Brett Tighe Sells Shares Under 10b5-1 Trading Plan

Okta's Chief Financial Officer, Brett Tighe, executed sales of Class A Common Stock on January 21, 2025, under a pre-arranged Rule 10b5-1 trading plan.

Summary

• On January 21, 2025, Brett Tighe, the CFO of Okta, Inc., sold 3,179 shares of Class A Common Stock at a weighted average price of $88.7407 and 1,821 shares at a weighted average price of $89.4657.
• These transactions were executed under a Rule 10b5-1 trading plan adopted on October 11, 2024.
• Following these transactions, Tighe directly owns 112,533 shares of Class A Common Stock and indirectly owns 1,250 shares through a trust.
• Tighe also holds various Restricted Stock Units (RSUs) which will vest over time, contingent upon continued employment.
• The RSUs represent the right to receive shares of Okta's Class A Common Stock.

Sentiment

Score: 5

Explanation: The document is neutral in sentiment as it simply reports stock sales by an executive under a pre-existing trading plan. It doesn't inherently indicate positive or negative sentiment about the company's prospects.

Future Outlook

The document does not contain specific forward-looking statements regarding the company's future performance, but it does detail the vesting schedule of the CFO's RSUs, which are contingent upon continued employment.

Industry Context

Sales by executives under 10b5-1 plans are common and allow insiders to sell shares over a period of time while avoiding concerns about insider trading. The market typically views these sales as routine unless the size or frequency is unusual.

Comparison to Industry Standards

• Executive stock sales are a common practice across publicly traded companies, including Okta's peers in the software and cybersecurity industries.
• Companies like CrowdStrike, Zscaler, and Palo Alto Networks also see regular Form 4 filings related to stock sales by their executives.
• The use of 10b5-1 trading plans is a standard method for executives to manage their stock sales in compliance with insider trading regulations.

Stakeholder Impact

• The stock sales could have a minor impact on shareholders if they perceive the sales negatively, although the existence of a 10b5-1 plan mitigates this concern.
• The vesting of RSUs incentivizes the CFO to remain with the company, aligning his interests with those of the shareholders.

Key Dates