Form 4: Snowflake CFO Michael Scarpelli Reports Stock Transaction and Updates Beneficial Ownership
SEC Form 4 Filing
CFO Michael Scarpelli reports a transaction involving Snowflake Class A Common Stock and updates his beneficial ownership, including holdings through various trusts.
Summary
- On June 10, 2024, Michael Scarpelli, the CFO of Snowflake Inc., reported a transaction involving Class A Common Stock.
- The transaction involved the withholding of 775 shares to cover tax obligations related to the vesting of restricted stock units at a price of $126.76.
- Following the transaction, Scarpelli directly owns 173,738 shares of Class A Common Stock.
- Scarpelli also indirectly owns shares through various trusts, including trusts for his children, a family trust, and a grantor retained annuity trust, totaling 818,948 shares.
- He also holds options to purchase 2,088,868 shares of Class A Common Stock at exercise prices of $8.88 and $207.56.
- Scarpelli has granted a Power of Attorney to several individuals at Snowflake Inc. and Cooley LLP to handle SEC filings on his behalf.
Sentiment
Score: 7
Explanation: The document is a routine regulatory filing, indicating standard executive compensation practices. The sentiment is neutral to slightly positive as it reflects continued alignment of executive interests with shareholders.
Industry Context
This is a routine disclosure related to executive compensation and stock ownership, common among publicly traded companies.
Comparison to Industry Standards
- Executive stock ownership and option grants are standard components of compensation packages in the tech industry, used to align management's interests with those of shareholders.
- Similar to other tech companies like Salesforce (CRM) and Adobe (ADBE), Snowflake uses stock options and restricted stock units as part of its executive compensation strategy.
- The vesting schedules and terms of the stock options are typical for the industry, designed to incentivize long-term performance and retention.
Stakeholder Impact
- The disclosure provides transparency to shareholders regarding executive compensation and ownership.
- The stock transactions may have a minor impact on the stock price due to the relatively small number of shares involved.
Key Dates
| Date | Description |
|---|---|
| 12/29/2020 | Date of the 2020 Fintail Irrevocable GST Exempt Trusts and Non-Exempt Trusts. |
| 08/19/2019 | Start date for monthly vesting of some stock options. |
| 06/06/2024 | Date of Power of Attorney execution. |
| 06/10/2024 | Date of the reported stock transaction. |
| 06/12/2024 | Date of signature by Attorney-in-Fact. |
| 08/26/2029 | Expiration date for some stock options. |
| 03/08/2022 | Start date for monthly vesting of some stock options. |
| 03/08/2032 | Expiration date for some stock options. |
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