Form 4: Snowflake CEO Frank Slootman Reports Stock Sales and Tax Withholding
SEC Form 4 Filing
Frank Slootman, CEO of Snowflake Inc., reports the sale of Class A Common Stock to cover tax obligations and pursuant to a pre-arranged 10b5-1 trading plan.
Summary
- Frank Slootman, CEO of Snowflake Inc., filed a Form 4 detailing changes in his beneficial ownership of the company's stock.
- On June 10, 2024, 1,294 shares of Class A Common Stock were withheld to satisfy tax obligations at a price of $126.76 per share.
- On June 11, 2024, Slootman sold 1,254 shares at a weighted-average price of $128.354 and 222 shares at a weighted-average price of $129.094, both sales were executed under a 10b5-1 trading plan adopted on September 25, 2023.
- Following these transactions, Slootman directly owns 230,527 shares of Class A Common Stock.
- Slootman also indirectly owns shares through various trusts and a family foundation.
Sentiment
Score: 5
Explanation: The filing is a routine disclosure of stock transactions. The use of a 10b5-1 plan suggests pre-planned sales, reducing the likelihood of a significant negative impact.
Industry Context
Executive stock sales are a common occurrence, often related to compensation, diversification, or tax planning. The use of a 10b5-1 trading plan indicates that these sales were pre-planned and not based on insider information.
Comparison to Industry Standards
- Executive stock sales are a normal part of executive compensation, and the amounts sold by Mr. Slootman are not out of line with other technology executives.
- Many executives at comparable companies such as Datadog, Crowdstrike, and Okta also utilize 10b5-1 trading plans to manage their stock sales.
Stakeholder Impact
- The stock sales could have a minor impact on shareholders if they perceive the sales negatively, but the 10b5-1 plan mitigates this concern.
- The transactions do not directly impact employees, customers, suppliers, or creditors.
Key Dates
| Date | Description |
|---|---|
| 09/08/1999 | Date of the Slootman Living Trust |
| 11/24/2010 | Date of the Slootman Family Foundation |
| 07/28/2022 | Date of the Slootman Grandchildren's Trust |
| 09/25/2023 | Adoption date of the 10b5-1 trading plan and date of the Slootman 2023 Grantor Retained Annuity Trust |
| 06/06/2024 | Date of Power of Attorney execution |
| 06/10/2024 | Date of tax withholding transaction |
| 06/11/2024 | Date of stock sales |
| 06/12/2024 | Date of Form 4 filing |
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