Form 4: Rivian CFO Claire McDonough Reports Stock Transactions
SEC Form 4 Filing
Claire McDonough, CFO of Rivian Automotive, reports the withholding of shares for tax obligations and a sale of shares under a pre-arranged trading plan.
Summary
- On May 15, 2024, Rivian Automotive withheld 4,029 shares of Class A Common Stock from CFO Claire McDonough to cover tax obligations related to the vesting of 11,287 Restricted Stock Units on February 15, 2024.
- The withholding price was $11.19 per share, based on the closing price of Rivian's Class A Common Stock on May 14, 2024.
- On May 16, 2024, McDonough sold 3,210 shares of Class A Common Stock at a price of $10.25 per share.
- This sale was executed under a Rule 10b5-1 trading plan adopted by McDonough on June 14, 2023.
- Following these transactions, McDonough directly owns 405,422 shares of Rivian's Class A Common Stock.
Sentiment
Score: 5
Explanation: The sentiment is neutral as the filing simply reports stock transactions related to tax obligations and a pre-arranged trading plan, without indicating any positive or negative outlook.
Industry Context
Executive stock transactions are common and closely monitored, providing insights into management's perspective on the company's valuation and future prospects. Rule 10b5-1 plans are frequently used to avoid accusations of insider trading.
Comparison to Industry Standards
- Executive compensation packages often include restricted stock units that vest over time, leading to tax obligations and subsequent stock sales.
- The use of Rule 10b5-1 trading plans is a standard practice among corporate executives to manage their stock sales in compliance with insider trading regulations.
- Comparing McDonough's transactions to those of executives at similar companies like Lucid or Tesla could provide a broader context, but that data is not available in this document.
Key Dates
| Date | Description |
|---|---|
| June 14, 2023 | Date Claire McDonough adopted the Rule 10b5-1 trading plan. |
| February 15, 2024 | Date of vesting of 11,287 Restricted Stock Units. |
| May 14, 2024 | Closing price of Rivian's Class A Common Stock used for tax withholding calculation. |
| May 15, 2024 | Date of tax withholding of 4,029 shares. |
| May 16, 2024 | Date of sale of 3,210 shares under Rule 10b5-1 trading plan. |
| May 17, 2024 | Date of signature on the Form 4 filing. |
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