Form 4: Rapid7 CFO Adams Sells Shares to Cover Tax Obligations

Rapid7's Chief Financial Officer, Timothy M. Adams, disposed of shares to cover tax obligations arising from vesting restricted stock units.

Summary

• On August 15, 2024, Timothy M. Adams, the Chief Financial Officer of Rapid7, Inc., disposed of 7,137 shares of common stock.
• The shares were sold at a price of $37.83 per share.
• This transaction was to cover tax withholding obligations related to the vesting of restricted stock units previously granted on January 3, 2022, February 15, 2023 and February 15, 2024.
• Following the transaction, Adams directly owns 157,514 shares of Rapid7 common stock.

Sentiment

Score: 6

Explanation: The document is a routine regulatory filing detailing a stock transaction for tax purposes. It doesn't contain any information that would significantly impact investor sentiment positively or negatively.

Industry Context

Executive stock transactions are a common occurrence in publicly traded companies. They are often related to compensation packages and personal financial planning. It's important to consider the context of these transactions, such as the reason for the sale and the overall holdings of the executive.

Comparison to Industry Standards

• Executive compensation structures, including stock options and restricted stock units, are standard practice across the technology industry.
• Companies like CrowdStrike, Okta, and Palo Alto Networks also utilize similar equity-based compensation plans for their executives.
• The percentage of shares sold by Timothy M. Adams to cover tax obligations appears to be within the typical range observed in similar transactions by executives at comparable companies.

Key Dates