4/A: Rapid7 CEO Corrects Stock Ownership Reporting After Tax Withholding Adjustment
SEC Form 4/A Amendment
Corey E. Thomas, CEO of Rapid7, files an amended Form 4 to correct the number of shares withheld for tax obligations and the resulting direct beneficial ownership.
Summary
- This is an amended SEC Form 4 filing by Corey E. Thomas, CEO of Rapid7, Inc.
- The amendment corrects an error in the original filing regarding the number of shares withheld by the issuer to satisfy tax obligations upon the vesting of restricted stock units.
- The original filing on February 20, 2024, incorrectly reported that 11,100 shares were withheld, and the CEO's direct beneficial ownership was 462,560 shares.
- The corrected filing states that 12,157 shares were withheld, and the CEO's direct beneficial ownership is 461,503 shares.
- The withholding relates to restricted stock units granted on January 30, 2020, February 2, 2021, February 15, 2022, February 15, 2023 and February 15, 2024.
Sentiment
Score: 7
Explanation: The document is a routine correction of a previous filing, indicating standard corporate governance practices. It doesn't suggest any underlying issues or concerns, hence a neutral to slightly positive sentiment.
Industry Context
Form 4 filings are a routine part of executive compensation and stock ownership transparency requirements for publicly traded companies.
Comparison to Industry Standards
- Executive compensation practices, including the use of restricted stock units and tax withholding, are common across publicly traded companies, particularly in the technology sector.
- Companies like CrowdStrike, Okta, and Palo Alto Networks also utilize similar equity compensation structures for their executives.
- The specific number of shares and vesting schedules vary based on company size, performance, and individual executive agreements.
Stakeholder Impact
- The correction ensures accurate reporting of executive stock ownership, which is important for shareholder transparency.
Key Dates
| Date | Description |
|---|---|
| 01/30/2020 | Date of restricted stock units grant related to tax withholding. |
| 02/02/2021 | Date of restricted stock units grant related to tax withholding. |
| 02/15/2022 | Date of restricted stock units grant related to tax withholding. |
| 02/15/2023 | Date of restricted stock units grant related to tax withholding. |
| 02/15/2024 | Date of transaction (tax withholding) and date of restricted stock units grant related to tax withholding. |
| 02/20/2024 | Date of original Form 4 filing with incorrect information. |
| 07/05/2024 | Date of amended Form 4/A filing. |
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