Form 4: Relay Therapeutics CFO Thomas Catinazzo Sells Shares to Cover Tax Obligations and Under 10b5-1 Plan

Thomas Catinazzo, CFO of Relay Therapeutics, sold shares of common stock to cover income tax withholding obligations and under a pre-arranged Rule 10b5-1 trading plan.

Summary

• Thomas Catinazzo, the Chief Financial Officer of Relay Therapeutics, sold shares of the company's common stock on October 28 and 29, 2024.
• On October 28, 2024, he sold 1,697 shares at a price of $6.06 to cover income tax withholding obligations upon the vesting of 5,724 restricted stock units (RSUs).
• He also sold 5,105 shares on October 28, 2024, at $6.06 and 2,300 shares on October 29, 2024, at $5.95 under a Rule 10b5-1 trading plan.
• Following these transactions, Catinazzo directly owns 304,091 shares of Relay Therapeutics, which includes 292,490 shares underlying RSUs.
• The sale to cover tax obligations was transacted in accordance with the Issuer's policies regarding the vesting of RSUs, and the reporting person had no discretion with respect to such sale.
• The Rule 10b5-1 trading plan was adopted on February 15, 2024.

Sentiment

Score: 6

Explanation: The sentiment is neutral. The filing simply reports stock sales by an executive for tax purposes and under a pre-existing trading plan. There's no indication of positive or negative implications for the company's performance.

Positives

• The sales to cover tax obligations were conducted in accordance with the Issuer's policies, indicating compliance.
• The use of a pre-arranged Rule 10b5-1 trading plan suggests that the sales were planned and not based on insider information.

Industry Context

Sales by company executives are a common occurrence, especially when related to tax obligations from vesting equity. The use of 10b5-1 plans is a standard practice to avoid insider trading concerns.

Comparison to Industry Standards

• Executive stock sales are a routine part of compensation in publicly traded companies.
• Companies like Amgen, Gilead, and Vertex Pharmaceuticals also see regular Form 4 filings from their executives.
• The use of Rule 10b5-1 trading plans is a widespread practice among executives to manage their stock sales in compliance with insider trading regulations.

Stakeholder Impact

• The stock sales could have a minor, temporary impact on the stock price, but the use of a 10b5-1 plan mitigates concerns about insider information.

Key Dates