Form 4: Snowflake CFO Michael Scarpelli Reports Stock Transactions and Beneficial Ownership
SEC Form 4 Filing
CFO Michael Scarpelli reports tax-related stock disposals and beneficial ownership details, including holdings in trusts and options.
Summary
- On March 15, 2024, Snowflake CFO Michael Scarpelli disposed of 5,778 shares of Class A Common Stock at a price of $156.97 to cover tax obligations related to vesting restricted stock units.
- On March 18, 2024, Scarpelli disposed of an additional 6,218 shares of Class A Common Stock at the same price for the same reason.
- Following these transactions, Scarpelli directly owns 174,513 shares of Class A Common Stock.
- Scarpelli also indirectly owns shares through various trusts for his children, a family trust, and a grantor retained annuity trust, totaling significant holdings.
- He also holds options to purchase 2,019,299 shares at $8.88, vesting monthly since August 19, 2019, and options to purchase 69,569 shares at $207.56, vesting monthly since March 8, 2022.
- These options are reported voluntarily and do not represent new transactions.
Sentiment
Score: 5
Explanation: The document is a routine regulatory filing detailing stock transactions and beneficial ownership, with no inherent positive or negative sentiment.
Industry Context
Form 4 filings are standard practice for reporting changes in beneficial ownership by company insiders, providing transparency to investors.
Comparison to Industry Standards
- Form 4 filings are a standard regulatory requirement for publicly traded companies in the United States, ensuring transparency regarding insider transactions.
- Similar filings are made by executives at companies like Datadog, CrowdStrike, and Okta, reflecting routine stock transactions and ownership disclosures.
- The details disclosed in this filing are consistent with the level of information expected in such reports, including the number of shares transacted, the price, and the nature of the transaction (e.g., tax withholding).
- The reporting of indirect ownership through trusts is also a common practice among executives to manage personal wealth and estate planning.
Stakeholder Impact
- The transactions may have a minor impact on shareholders due to the small number of shares disposed of by the CFO.
- The filing provides transparency to shareholders regarding the CFO's stock ownership and transactions.
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 options to purchase 2,019,299 shares at $8.88. |
| 03/08/2022 | Start date for monthly vesting of options to purchase 69,569 shares at $207.56. |
| 03/15/2024 | Date of disposal of 5,778 shares of Class A Common Stock. |
| 03/18/2024 | Date of disposal of 6,218 shares of Class A Common Stock. |
| 03/19/2024 | Date of signature of the Form 4 filing. |
| 08/26/2029 | Expiration date for options to purchase 2,019,299 shares at $8.88. |
| 03/08/2032 | Expiration date for options to purchase 69,569 shares at $207.56. |
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