Form 4: Rackspace Technology Executive Sells Shares to Cover Tax Obligations

Srinivas Koushik, President of Technology at Rackspace Technology, sold 9,165 shares of common stock to cover tax obligations related to vesting restricted stock units.

Summary

• On March 3, 2025, Srinivas Koushik, President of Technology at Rackspace Technology, sold 9,165 shares of Rackspace Technology, Inc. common stock.
• The sale was executed at a weighted average price of $2.37 per share, with individual trades ranging from $2.31 to $2.41.
• The transaction was conducted under a pre-arranged Rule 10b5-1 trading plan adopted on September 12, 2023, to cover tax withholding obligations related to vesting restricted stock units.
• Following the transaction, Koushik directly owns 1,009,086 shares of Rackspace Technology common stock.

Sentiment

Score: 5

Explanation: The document describes a routine transaction (stock sale for tax obligations) by an executive, which is neither particularly positive nor negative. The use of a 10b5-1 plan suggests transparency and pre-planning.

Industry Context

Executive stock sales are a common occurrence, particularly to cover tax obligations related to equity compensation. The use of a pre-arranged Rule 10b5-1 trading plan is a standard practice to avoid accusations of insider trading.

Comparison to Industry Standards

• Executive stock sales to cover tax obligations are a common practice across publicly traded companies.
• Companies like Amazon, Microsoft, and Google also see similar transactions by their executives under 10b5-1 plans.
• The volume of shares sold and the value of the transaction are relatively small compared to larger tech companies, reflecting Rackspace's current market capitalization.

Stakeholder Impact

• The sale of shares by an executive could have a minor negative impact on shareholder sentiment, although the impact is likely to be minimal given the relatively small number of shares sold and the pre-planned nature of the transaction.

Key Dates