Form 4: Snowflake CFO Michael Scarpelli Reports Changes in Beneficial Ownership
SEC Form 4
Michael Scarpelli, CFO of Snowflake Inc., reports transactions involving Class A Common Stock, including shares withheld for tax obligations and a distribution from a retained annuity trust.
Summary
- On September 16, 2024, Snowflake CFO Michael Scarpelli reported changes in his beneficial ownership of Snowflake Inc. Class A Common Stock.
- These changes include shares withheld to cover tax obligations upon the vesting of restricted stock units at a price of $113.67 per share.
- Specifically, 1,555 shares and 1,445 shares were disposed of to satisfy tax withholding.
- Scarpelli also received 30,006 shares from the Michael P. Scarpelli Retained Annuity Trust on September 12, 2024.
- Following these transactions, Scarpelli directly owns 196,969 shares of Class A Common Stock.
- He also indirectly owns shares through various trusts for his children, his spouse, and family trusts, totaling 766,441 shares.
- Scarpelli also voluntarily reported his outstanding stock options for 2,088,868 shares of Snowflake's Class A Common Stock.
Sentiment
Score: 5
Explanation: The document is a standard regulatory filing detailing stock transactions, and carries a neutral sentiment.
Industry Context
This filing is a routine disclosure related to executive compensation and stock ownership, common among publicly traded companies. It provides transparency into the transactions of company insiders.
Comparison to Industry Standards
- Executive compensation packages, including stock options and restricted stock units, are standard practice in the technology industry.
- The vesting schedules and exercise prices of Scarpelli's stock options are typical for executive compensation plans.
- Similar to other tech companies, Snowflake uses equity-based compensation to align executive interests with shareholder value.
Stakeholder Impact
- The filing provides transparency to shareholders regarding executive stock ownership.
- The transactions do not appear to have a material impact on employees, customers, suppliers, or creditors.
Key Dates
| Date | Description |
|---|---|
| 12/29/2020 | Date of the 2020 Fintail Irrevocable GST Exempt Trusts and Non-Exempt Trusts for the benefit of Scarpelli's children. |
| 03/08/2022 | Start date for the monthly vesting of options priced at $207.56. |
| 09/12/2024 | Distribution of 30,006 shares from the Michael P. Scarpelli Retained Annuity Trust to the Reporting Person. |
| 09/16/2024 | Date of the transactions involving the withholding of shares for tax obligations. |
| 09/18/2024 | Date of the report filing. |
| 08/26/2029 | Expiration date of stock options with an exercise price of $8.88. |
| 03/08/2032 | Expiration date of stock options with an exercise price of $207.56. |
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