Form 4: SoundHound AI CEO Keyvan Mohajer Sells Shares to Cover Tax Obligations and Under 10b5-1 Plan
SEC Form 4
SoundHound AI CEO Keyvan Mohajer sold shares of the company's Class A Common Stock on June 20 and June 24, 2024, to cover tax obligations and under a pre-arranged 10b5-1 trading plan.
Summary
- Keyvan Mohajer, CEO of SoundHound AI, Inc., reported the sale of Class A Common Stock on June 20 and June 24, 2024.
- On June 20, 2024, 67,994 shares were sold at a price of $4.0399 per share.
- On June 24, 2024, 116,504 shares were sold at a weighted-average price of $3.9471, with prices ranging from $3.88 to $4.06.
- The sales were made to satisfy tax withholding obligations related to the vesting of restricted stock units and pursuant to a Rule 10b5-1 trading plan adopted in March 2024.
- Following the reported transactions, Mohajer beneficially owns 953,333 shares of Class A Common Stock.
Sentiment
Score: 6
Explanation: The document is neutral. It simply reports stock sales by the CEO, which are explained by tax obligations and a pre-existing trading plan. There is no indication of positive or negative sentiment.
Positives
- The CEO's stock sales to cover tax obligations are a normal part of executive compensation.
- The sales were partially executed under a pre-arranged 10b5-1 trading plan, which is a common practice to avoid accusations of insider trading.
Industry Context
Executive stock sales are a common occurrence in publicly traded companies. Sales to cover tax obligations related to vesting equity are typical. The use of 10b5-1 plans is a standard practice to allow insiders to sell shares without being accused of acting on material non-public information.
Comparison to Industry Standards
- Executive compensation practices, including stock options and restricted stock units, are common across the tech industry.
- Companies like Palantir, C3.ai, and UiPath also see regular Form 4 filings related to executive stock transactions.
- The use of 10b5-1 trading plans is a widespread practice among executives at publicly traded companies to manage their stock sales in compliance with insider trading regulations.
Stakeholder Impact
- The stock sales could have a minor impact on shareholders due to the increased supply of shares in the market, but the impact is likely to be minimal given the relatively small number of shares sold compared to the total outstanding shares.
Key Dates
| Date | Description |
|---|---|
| May 5, 2022 | Date of the Limited Power of Attorney for reporting under Section 16(a) of the Securities Exchange Act of 1934. |
| July 20, 2022 | Date of restricted stock units granted to the reporting person. |
| September 7, 2022 | Date of restricted stock units granted to the reporting person. |
| August 3, 2023 | Date of restricted stock units granted to the reporting person. |
| March 2024 | Date the reporting person adopted a Rule 10b5-1 trading plan. |
| June 20, 2024 | Date of the first stock sale transaction. |
| June 24, 2024 | Date of the second stock sale transaction. |
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