Form 4: PagerDuty Director Sameer Dholakia Reports Acquisition of Restricted Stock Units

Director Sameer Dholakia reports acquisition of 8,817 Restricted Stock Units (RSUs) of PagerDuty, Inc. on June 13, 2024.

Summary

• On June 13, 2024, Sameer Dholakia, a director of PagerDuty, Inc., acquired 8,817 Restricted Stock Units (RSUs) pursuant to the Issuer's Non-Employee Director compensation policy.
• These RSUs represent a contingent right to receive one share of PagerDuty's common stock each and have no expiration date.
• The shares underlying the RSU award will fully vest on the earlier of the first anniversary of the grant date or immediately prior to the next Annual Meeting of stockholders, contingent upon the director's continuous service.
• Following the transaction, Dholakia beneficially owns 47,427 shares, a portion of which are restricted stock units.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The acquisition of RSUs by a director is generally a positive sign, indicating confidence in the company's future. However, it's a routine transaction related to director compensation.

Positives

• The acquisition of RSUs by a director signals confidence in the company's future performance.
• The vesting schedule incentivizes continued service and commitment from the director.

Future Outlook

The vesting of the RSUs is contingent upon the director's continuous service, aligning their interests with the company's long-term success.

Industry Context

Director compensation in the form of RSUs is a common practice in the tech industry to align the interests of directors with those of shareholders and incentivize long-term value creation.

Comparison to Industry Standards

• Granting RSUs to non-employee directors is a standard practice among publicly traded companies, particularly in the technology sector.
• Companies like Atlassian and Datadog also utilize RSU grants as part of their director compensation packages.
• The vesting schedules, typically one year or until the next annual meeting, are also consistent with industry norms.

Stakeholder Impact

• The RSU grant aligns the director's interests with those of shareholders, potentially leading to decisions that benefit the company's long-term value.

Key Dates