Form 4: Scholar Rock CEO Sells Shares to Cover Tax Obligations After RSU Vesting

Scholar Rock's CEO, Jay T. Backstrom, sold 22,308 shares of common stock to cover tax obligations following the vesting of restricted stock units.

Summary

• Jay T. Backstrom, CEO of Scholar Rock Holding Corp, sold 22,308 shares of common stock on January 16, 2025, at a price of $44.1972 per share.
• This sale was not a discretionary trade but was mandated by the company to cover tax withholding obligations related to the vesting of restricted stock units (RSUs).
• The RSUs were granted on February 12, 2024, and vest annually over four years, contingent on continued service with the company.
• Following the transaction, Backstrom beneficially owns 330,363 shares, consisting of 57,149 shares of common stock and 273,214 RSUs.

Sentiment

Score: 5

Explanation: The document reflects a routine transaction related to executive compensation and does not indicate any positive or negative sentiment.

Industry Context

This is a routine transaction related to executive compensation and is common practice for companies that use equity-based compensation.

Comparison to Industry Standards

• The practice of selling shares to cover tax obligations upon vesting of restricted stock units is a standard practice across many publicly traded companies.
• Many companies use a 'sell to cover' mechanism to simplify the tax process for employees receiving equity compensation.
• The vesting schedule of four years is also a common practice for RSU grants.

Stakeholder Impact

• The transaction has a minimal impact on shareholders as it is a routine sale to cover tax obligations.
• The sale does not indicate any change in the CEO's confidence in the company.

Key Dates

Keywords

insider trading, stock sale, restricted stock units, RSU, tax withholding, equity compensation, executive compensation, Scholar Rock, SRRK