Form 4: Phreesia Director Edward Cahill Reports Acquisition of Common Stock

Director Edward Cahill acquired 546 shares of Phreesia, Inc. common stock at $18.29 per share on October 31, 2024, through deferred stock units.

Summary

• On October 31, 2024, Edward Cahill, a director of Phreesia, Inc., acquired 546 shares of common stock at a price of $18.29 per share.
• This acquisition was made through the receipt of deferred stock units (DSUs) in lieu of an annual cash retainer, as part of Phreesia's Non-Employee Director Deferred Compensation Program.
• Following the transaction, Cahill directly owns 47,032 shares of Phreesia, Inc. common stock.
• The DSUs will be settled in common stock either 90 days after Cahill ceases to be a director or five years from the grant date.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The director's acquisition of shares indicates confidence in the company, but it's part of a standard compensation plan.

Positives

• The acquisition reflects continued director investment in the company.
• The use of DSUs aligns director compensation with long-term company performance.

Future Outlook

The director will receive underlying common stock on the earlier of (i) 90 days after ceasing to serve as a member of the Board of Directors of the Issuer and incurring a 'separation from service' within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder, or (ii) five years from the date of grant of the DSUs.

Industry Context

Director stock acquisitions are common and often viewed positively, indicating confidence in the company's future. Deferred compensation plans are also a standard practice to align director interests with shareholder value.

Comparison to Industry Standards

• Director compensation packages often include a mix of cash and equity.
• Deferred stock units are a common tool used to align director compensation with long-term shareholder value, similar to practices at companies like Veeva Systems and Cerner.
• The timing of stock vesting, either upon separation from service or after a set period, is consistent with industry norms.

Stakeholder Impact

• Shareholders may view the director's stock acquisition positively, as it aligns the director's interests with the company's performance.

Key Dates