Form 4: SoundHound AI CEO Sells Shares for Tax Obligations
Insider Transaction Report
SoundHound AI CEO Keyvan Mohajer sold 144,326 shares of Class A Common Stock at $11.2769 per share to cover tax withholding obligations from RSU vesting.
Summary
- Keyvan Mohajer, CEO, Director, and 10% Owner of SoundHound AI, Inc. (SOUN), reported a sale of Class A Common Stock.
- The transaction involved the disposition of 144,326 shares of Class A Common Stock.
- The shares were sold at a price of $11.2769 per share.
- The sale occurred on December 22, 2025, and was reported on December 29, 2025.
- Following the transaction, Mohajer beneficially owns 2,198,287 shares directly.
- The purpose of the sale was to satisfy tax withholding obligations associated with the vesting of restricted stock units (RSUs).
Sentiment
Score: 5
Explanation: The filing reports a routine, non-discretionary sale of shares by an insider to cover tax obligations related to RSU vesting. This type of transaction is neutral in terms of sentiment towards the company's future prospects.
Positives
- The sale is explicitly for tax withholding obligations, which is a common and non-discretionary event for executives receiving equity compensation, rather than a discretionary sale indicating a lack of confidence.
Negatives
- The CEO's direct beneficial ownership of Class A Common Stock decreased by 144,326 shares as a result of the transaction.
Future Outlook
This filing does not contain any forward-looking statements or guidance regarding the company's future performance or strategic direction.
Industry Context
This is a routine insider transaction common across all industries for executives who receive equity compensation. It reflects a standard practice to cover tax liabilities upon the vesting of restricted stock units, rather than a strategic move related to industry trends.
Corporate Governance
| Change Type | Description | Effective Date | Impact Assessment |
|---|---|---|---|
| Power of Attorney | A Limited Power of Attorney was granted by Keyvan Mohajer to Warren Heit and Nitesh Sharan for the purpose of executing and filing Section 16(a) forms (Form 3, 4, or 5) with the SEC. | 2022-05-05 | This is a standard corporate governance practice to facilitate timely and accurate insider trading disclosures, ensuring compliance with SEC regulations. |
Stakeholder Impact
- Shareholders: The CEO's direct ownership stake in the company has slightly decreased due to the sale, although it was for tax purposes and not a discretionary divestment.
- Employees: No direct impact on employees is indicated by this filing.
Key Dates
| Date | Description |
|---|---|
| 2022-05-05 | Date of execution of the Limited Power of Attorney for Section 16(a) reporting. |
| 2022-07-20 | Grant date of restricted stock units (RSUs) to the reporting person. |
| 2023-08-03 | Grant date of restricted stock units (RSUs) to the reporting person. |
| 2024-08-01 | Grant date of restricted stock units (RSUs) to the reporting person. |
| 2025-07-31 | Grant date of restricted stock units (RSUs) to the reporting person. |
| 2025-12-22 | Date of the reported transaction (sale of Class A Common Stock). |
| 2025-12-24 | Federal holiday for EDGAR filing purposes. |
| 2025-12-26 | Federal holiday for EDGAR filing purposes. |
| 2025-12-29 | Date the Form 4 was filed. |
Recommendation
holdThe sale by CEO Keyvan Mohajer was explicitly stated to satisfy tax withholding obligations related to the vesting of restricted stock units. This is a common and routine practice for executives receiving equity compensation and does not typically signal a change in management's confidence or the company's fundamentals. Therefore, it does not warrant a change in investment recommendation based solely on this filing.
Keywords
SoundHound AI, SOUN, Keyvan Mohajer, Insider Transaction, Form 4, Stock Sale, Restricted Stock Units, Tax Withholding
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