Form 4: Salesforce Co-Founder Parker Harris Executes Stock Option and Sells Shares
SEC Form 4
Parker Harris, Co-Founder and CTO of Slack at Salesforce, exercised stock options and sold shares under a pre-arranged Rule 10b5-1 trading plan.
Summary
- On May 21, 2024, Parker Harris, Co-Founder and CTO of Slack at Salesforce, exercised a non-qualified stock option to purchase 4,200 shares of common stock at a price of $118.04 per share.
- Harris then sold a total of 4,200 shares acquired from the option exercise at $118.04.
- He also sold 1,619 shares at a weighted average price of $283.9404, 1,016 shares at $285.1994, 824 shares at $286.1367, and 741 shares at $286.9147.
- Additionally, Harris made a gift of 1,000 shares.
- These transactions were executed under a pre-arranged Rule 10b5-1 trading plan adopted on September 26, 2023.
- Following these transactions, Harris directly owns 115,762 shares and indirectly owns 948,987 shares through the HJ Family Trust, 115,840 shares through LLC BE, 171,323 shares through LLC BN, 115,840 shares through LLC NE, 171,324 shares through LLC NN, 115,840 shares through LLC ZE, and 171,324 shares through LLC ZN.
- He also directly owns 100,570 non-qualified stock options.
Sentiment
Score: 5
Explanation: The document is a standard regulatory filing detailing stock transactions by an executive. It doesn't inherently convey positive or negative sentiment, but rather provides factual information about the transactions.
Industry Context
This filing is a routine disclosure of insider transactions and is typical for executives holding stock options and participating in equity compensation plans. The use of a 10b5-1 plan suggests a pre-arranged strategy for selling shares to avoid any appearance of trading on inside information.
Comparison to Industry Standards
- Executive stock option exercises and sales are common in the tech industry.
- Companies like Microsoft, Apple, and Amazon also see regular filings of Form 4s by their executives.
- The use of 10b5-1 trading plans is a standard practice to ensure compliance with insider trading regulations.
- The volume of shares sold is relatively small compared to the total outstanding shares of Salesforce, suggesting it is unlikely to have a significant impact on the stock price.
Key Dates
| Date | Description |
|---|---|
| 03/22/2019 | Option is exercisable and vests over four years at the rate of 25% on March 22, 2019, the first anniversary of the holder's date of grant, with the balance vesting in equal monthly installments over the remaining 36 months. |
| 09/26/2023 | Date of adoption of Rule 10b5-1 trading plan. |
| 05/21/2024 | Date of stock option exercise and share sales. |
| 03/22/2025 | Expiration date of the non-qualified stock option. |
| 05/22/2024 | Date of filing. |
Disclaimer:The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.