Form 4: Rapid7 CFO Timothy Adams Reports Share Disposal for Tax Obligations
SEC Form 4 Filing
Timothy Adams, CFO of Rapid7, Inc., reports the disposal of shares to cover tax obligations related to vesting restricted stock units.
Summary
- On May 15, 2024, Timothy Adams, the Chief Financial Officer of Rapid7, Inc., reported a transaction involving the disposal of 6,717 shares of common stock to cover tax obligations.
- The shares were withheld by Rapid7 to satisfy tax obligations related to the vesting of restricted stock units previously granted to Adams on January 3, 2022, February 15, 2023, and February 15, 2024.
- Following the transaction, Adams beneficially owns 164,651 shares of Rapid7 common stock, which includes 629 shares acquired under the Rapid7, Inc. 2015 Employee Stock Purchase Plan on March 15, 2024.
Sentiment
Score: 6
Explanation: The document reflects a neutral event (tax obligation fulfillment) and doesn't indicate any significant positive or negative sentiment.
Industry Context
This is a routine transaction related to executive compensation and tax obligations, common in publicly traded companies.
Comparison to Industry Standards
- Similar transactions are common among executives in publicly traded companies like CrowdStrike, Okta, and Palo Alto Networks, where stock-based compensation is a significant part of their overall remuneration.
- Executives often sell shares to cover tax liabilities arising from the vesting of restricted stock units or the exercise of stock options.
- The frequency and size of these transactions can vary based on individual circumstances and company policies.
Stakeholder Impact
- The transaction has a minimal impact on shareholders as it is a routine disposal of shares for tax purposes.
Key Dates
| Date | Description |
|---|---|
| 2022-01-03 | Date of a previous grant of restricted stock units to Timothy Adams. |
| 2023-02-15 | Date of a previous grant of restricted stock units to Timothy Adams. |
| 2024-02-15 | Date of a previous grant of restricted stock units to Timothy Adams. |
| 2024-03-15 | Date Timothy Adams acquired shares under the Rapid7, Inc. 2015 Employee Stock Purchase Plan. |
| 2024-05-15 | Date of the share disposal transaction by Timothy Adams. |
| 2024-05-17 | Date of the report filing. |
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