Form 4: Scholar Rock Holding Corp. COO & CFO Sells Shares to Cover Tax Obligations
SEC Form 4 Filing
Scholar Rock Holding Corp.'s COO & CFO, Edward H. Myles, sold 12,539 shares to cover tax obligations related to vesting restricted stock units.
Summary
- Edward H. Myles, the COO & CFO of Scholar Rock Holding Corp., sold 12,539 shares of common stock on January 16, 2025.
- The sale was executed at a price of $44.1972 per share.
- This transaction was not a discretionary trade but a 'sell to cover' transaction mandated by the company to cover tax withholding obligations related to the vesting of restricted stock units (RSUs).
- The RSUs that vested were granted on February 1, 2021, February 14, 2022, and February 12, 2024.
- The RSUs vest annually over four years, contingent on continued service with the company.
- Following the transaction, Myles beneficially owns 148,549 shares, consisting of 21,266 shares of common stock and 127,283 RSUs.
Sentiment
Score: 5
Explanation: The document reflects a routine transaction related to executive compensation and tax obligations. It does not indicate any positive or negative sentiment regarding the company's performance or outlook.
Industry Context
This is a routine transaction for executives who receive stock-based compensation. It is common for companies to mandate 'sell to cover' transactions to manage tax obligations for employees.
Comparison to Industry Standards
- Many companies use restricted stock units (RSUs) as part of their compensation packages.
- It is standard practice for companies to have a 'sell to cover' mechanism to handle tax obligations when RSUs vest.
- The sale of shares by executives to cover taxes is a common occurrence and is not unusual in the biotech industry or other sectors.
Stakeholder Impact
- The sale of shares by the COO & CFO has a minimal impact on shareholders as it is a routine transaction to cover tax obligations.
Key Dates
| Date | Description |
|---|---|
| 02/01/2021 | Date of one of the RSU grants that vested. |
| 02/14/2022 | Date of one of the RSU grants that vested. |
| 02/12/2024 | Date of one of the RSU grants that vested. |
| 01/16/2025 | Date of the stock sale transaction. |
| 01/21/2025 | Date the Form 4 was signed. |
Keywords
Form 4, insider trading, stock sale, restricted stock units, RSU, tax withholding, Scholar Rock Holding Corp, SRRK, Edward H. Myles, COO, CFO
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