Form 4: Relay Therapeutics CFO Thomas Catinazzo Sells Shares to Cover Tax Obligations

Thomas Catinazzo, CFO of Relay Therapeutics, sold shares of common stock to cover income tax withholding obligations related to vesting restricted stock units.

Summary

• On April 28, 2025, Thomas Catinazzo, the CFO of Relay Therapeutics, sold 1,709 shares of common stock at $3.17 per share.
• An additional 981 shares were sold on the same day at $3.17 per share.
• On April 29, 2025, Catinazzo sold 3,558 shares at $3.23 per share.
• On April 30, 2025, Catinazzo sold 12,943 shares at $3.00 per share.
• These sales were primarily to cover income tax withholding obligations upon the vesting of restricted stock units (RSUs).
• The CFO's transactions were executed under a pre-arranged Rule 10b5-1 trading plan adopted on February 15, 2024.
• Following these transactions, Catinazzo directly owns 355,376 shares of Relay Therapeutics, which includes shares underlying RSUs.

Sentiment

Score: 6

Explanation: The sentiment is neutral. The stock sales are routine and related to tax obligations, executed under a pre-arranged plan. There's no indication of negative sentiment, but also no particularly positive news.

Positives

• The sales were conducted under a pre-arranged Rule 10b5-1 trading plan, indicating they were planned in advance and not based on current market information.

Risks

• Executive stock sales can sometimes be perceived negatively by investors, although these sales appear to be routine and for tax obligation purposes.

Industry Context

Executive stock sales are a common occurrence in publicly traded companies, often related to compensation and tax planning. The use of Rule 10b5-1 trading plans is a standard practice to avoid accusations of insider trading.

Comparison to Industry Standards

• Similar to other biotech companies, Relay Therapeutics uses restricted stock units (RSUs) as part of its executive compensation packages.
• The sale of shares to cover tax obligations upon vesting of RSUs is a common practice among executives in publicly traded companies, including those in the biotechnology sector such as Amgen, Gilead Sciences, and Vertex Pharmaceuticals.

Stakeholder Impact

• The stock sales may have a minor impact on shareholders due to the increased supply of shares in the market, but the impact is likely to be minimal given the relatively small number of shares sold.

Key Dates

Keywords

Relay Therapeutics, RLAY, Thomas Catinazzo, CFO, stock sale, Form 4, Rule 10b5-1, restricted stock units, RSUs, insider trading