Form 4: Palantir CEO Alexander Karp Executes Stock Options and Sells Shares Under 10b5-1 Plan

Palantir Technologies CEO Alexander Karp exercised stock options and sold shares of Class A Common Stock on September 13, 16, and 17, 2024, under a pre-existing 10b5-1 trading plan.

Summary

• Alexander Karp, CEO of Palantir Technologies, executed a series of transactions involving Class B Common Stock options and Class A Common Stock.
• On September 13, 2024, Karp exercised 246,502 vested Class B Common Stock options, converted them to Class A Common Stock, and sold the resulting shares in the open market.
• On September 16, 2024, he exercised 4,500,000 vested Class B Common Stock options, converted them to Class A Common Stock, and sold the resulting shares in the open market at a weighted average price of $36.0697.
• On September 17, 2024, Karp exercised 4,253,498 vested Class B Common Stock options, converted them to Class A Common Stock, and sold 4,048,271 shares at a weighted average price of $36.2611 and 205,227 shares at $37.04 in the open market.
• These transactions were conducted under a pre-existing Rule 10b5-1 trading plan established on December 12, 2023.
• Following these transactions, Karp continues to beneficially own a significant amount of Class A Common Stock and Class B Common Stock.

Sentiment

Score: 6

Explanation: The document is neutral in tone, simply reporting transactions. The use of a 10b5-1 plan suggests a planned and transparent approach to stock sales, which is generally viewed as a positive governance practice. However, large stock sales by executives can sometimes create uncertainty among investors.

Risks

• Executive stock sales can sometimes be perceived negatively by investors, although these sales were conducted under a pre-existing 10b5-1 trading plan.

Future Outlook

The document does not contain specific forward-looking statements, but it indicates that the reporting person may continue to execute transactions under the 10b5-1 trading plan.

Management Comments

• This Form 4 has been compiled based on applicable requirements to reflect the specific transactions described herein and is not intended to disclose or describe all shares and/or other equity securities owned or beneficially held by the Reporting Person.
• For additional details regarding the Reporting Person's overall stock and equity holdings, please see the Issuer's Proxy Statement filed with the Securities and Exchange Commission on April 26, 2024, including under the heading 'Security Ownership Of Certain Beneficial Owners And Management' (subject to the definitions, explanations, and time periods described therein).

Industry Context

Executive stock sales are a common occurrence in publicly traded companies, often conducted under pre-arranged trading plans to avoid accusations of insider trading. The use of a 10b5-1 plan provides a structured and transparent framework for these transactions.

Comparison to Industry Standards

• Many tech company executives use 10b5-1 plans to manage their stock sales, similar to executives at companies like Google (Alphabet Inc.) and Microsoft.
• The reported weighted average sale prices are within the typical range for Palantir's stock price during the specified period.
• The exercise of stock options is a standard component of executive compensation packages in the technology industry.

Stakeholder Impact

• The stock sales could potentially impact shareholder sentiment, although the existence of a 10b5-1 plan mitigates some concerns.
• The transactions do not appear to have a direct impact on employees, customers, suppliers, or creditors.

Key Dates