Form 4: Smartsheet CEO Mark Mader Executes Stock Transactions Under 10b5-1 Plan

Smartsheet's CEO, Mark Mader, engaged in multiple stock transactions, including the sale and exercise of options, under a pre-arranged 10b5-1 trading plan.

Summary

• Mark Mader, the President and CEO of Smartsheet Inc., executed several transactions involving the company's Class A Common Stock.
• On December 16, 2024, Mader sold 5,000 shares at a price of $56 per share.
• On December 17, 2024, Mader exercised options to acquire 47,916 shares at a price of $1.38 per share.
• Following the exercise of options, Mader sold 47,916 shares at a price of $55.96 per share.
• These transactions were conducted under a pre-arranged Rule 10b5-1 trading plan adopted on March 27, 2024.
• Mader also has indirect beneficial ownership of 51,250 shares held by the T49C Trust and 40,000 shares held by the L38 Trust, both for the benefit of his child, but he disclaims beneficial ownership of these shares.

Sentiment

Score: 5

Explanation: The document reflects routine stock transactions by an executive under a pre-arranged plan, which is neither positive nor negative for the company's overall outlook.

Risks

• The sale of shares by the CEO could be perceived negatively by the market, although it is part of a pre-arranged trading plan.

Industry Context

Executive stock transactions are a common occurrence in publicly traded companies, and the use of 10b5-1 plans is a standard practice to avoid accusations of insider trading. This filing is a routine disclosure of such activity.

Comparison to Industry Standards

• The use of Rule 10b5-1 trading plans is a common practice among executives at publicly traded companies, including those in the technology sector like Smartsheet.
• Similar filings are regularly made by executives at companies such as Atlassian (TEAM), Salesforce (CRM), and Workday (WDAY), reflecting routine stock transactions under pre-arranged plans.
• The prices at which the shares were sold are within the typical range for Smartsheet's stock price, and the option exercise price is consistent with the terms of the stock option grants.

Stakeholder Impact

• The transactions may have a minor impact on shareholders, as they involve the sale of shares by the CEO, but this is part of a pre-arranged plan.

Key Dates

Keywords

Smartsheet, Mark Mader, stock transactions, Form 4, Rule 10b5-1, insider trading, equity securities, stock options