Form 4: Skyward Specialty Insurance Group Executive Sells Shares After PSU and RSU Vesting

Sandip A. Kapadia, EVP and Chief Actuary of Skyward Specialty Insurance Group, sold shares to cover taxes and fees after the vesting of Performance Stock Units (PSUs) and Restricted Stock Units (RSUs).

Summary

• Sandip A. Kapadia, EVP and Chief Actuary of Skyward Specialty Insurance Group, executed transactions involving the company's common stock on March 6, 2025.
• These transactions included the vesting and settlement of 2,937 Performance Stock Units (PSUs) and 5,000 Restricted Stock Units (RSUs).
• Kapadia sold 1,095 shares at a weighted average price of $50.2399 to cover taxes and fees related to the vesting of the PSUs and RSUs.
• An additional 1,866 shares were sold at the same weighted average price for tax and fee obligations related to the vesting of the RSUs.
• Following these transactions, Kapadia directly owns 15,347 shares of Skyward Specialty Insurance Group.
• The PSUs were awarded on January 1, 2022, and vested based on performance criteria from January 1, 2022, through December 31, 2024.
• The RSUs were granted on January 12, 2023, in conjunction with the company's IPO, with 5,000 vesting on January 12, 2025, and the remaining 5,000 scheduled to vest on January 12, 2026, subject to continuous service.

Sentiment

Score: 6

Explanation: The document reflects routine executive stock transactions related to compensation. It's neutral overall, with no clear positive or negative implications for the company's performance.

Future Outlook

5,000 RSUs will fully vest on January 12, 2026, subject to the Reporting Person's continuous service through the vesting date.

Industry Context

Executive stock transactions are a common occurrence in publicly traded companies, often related to equity compensation plans. These transactions are closely watched by investors for insights into management's perspective on the company's value and future prospects.

Comparison to Industry Standards

• Executive compensation packages often include stock options, restricted stock units (RSUs), and performance stock units (PSUs) to align management's interests with those of shareholders.
• Vesting schedules for RSUs and PSUs typically range from 3 to 5 years, with performance-based vesting criteria for PSUs tied to specific company goals.
• Sales of shares acquired through equity compensation are common, particularly to cover tax obligations arising from vesting.
• Companies like Chubb, AIG, and Travelers also utilize similar equity compensation structures for their executives.

Stakeholder Impact

• The transactions have a minimal direct impact on stakeholders.
• Shareholders may view the transactions as a routine part of executive compensation.
• Employees may see it as a standard practice related to equity awards.

Key Dates