Form 4: Scholar Rock Holding Corp Executive Sells Shares to Cover Tax Obligations
SEC Form 4 Filing
Caryn Parlavecchio, CHRO of Scholar Rock Holding Corp, sold 6,434 shares to cover tax obligations related to vesting restricted stock units.
Summary
- Caryn Parlavecchio, the Chief Human Resources Officer (CHRO) of Scholar Rock Holding Corp, sold 6,434 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 rather a 'sell to cover' transaction mandated by the company to cover tax withholding obligations associated with the vesting of restricted stock units (RSUs).
- The RSUs were granted on February 14, 2022 and February 12, 2024, and vest annually over four years.
- Following the transaction, Parlavecchio beneficially owns 145,554 shares, consisting of 52,046 shares of common stock and 93,508 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 about the company's performance or future prospects.
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, particularly in the biotech and tech industries.
- It is standard practice for companies to handle tax obligations related to vesting RSUs through 'sell to cover' transactions.
- The sale of shares by executives to cover taxes is a common occurrence and is not typically indicative of a negative outlook on the company's future.
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 executive's confidence in the company.
Key Dates
| Date | Description |
|---|---|
| 02/14/2022 | Date of one of the RSU grants that vested. |
| 02/12/2024 | Date of one of the RSU grants that vested. |
| 01/15/2025 | Date of RSU vesting that triggered the tax obligation. |
| 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, tax withholding, Scholar Rock Holding Corp, SRRK, Caryn Parlavecchio, CHRO
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