Form 4: SoundHound AI Chief Technology Officer Sells Shares to Cover Tax Obligations
SEC Form 4
SoundHound AI's Chief Technology Officer, Timothy Stonehocker, sold 34,407 shares of Class A Common Stock to cover tax obligations related to vesting restricted stock units.
Summary
- Timothy Stonehocker, the Chief Technology Officer of SoundHound AI, Inc., sold 34,407 shares of Class A Common Stock on December 20, 2024, at a price of $20.3042 per share.
- This sale was executed to satisfy tax withholding obligations associated with the vesting of restricted stock units granted to Mr. Stonehocker on multiple dates in 2022, 2023 and 2024.
- Following the transaction, Mr. Stonehocker beneficially owns 796,581 shares of Class A Common Stock.
- This total includes 1,492 shares acquired through the company's Employee Stock Purchase Plan in November 2024.
- Mr. Stonehocker also transferred 209,698 shares and options for 638,969 shares to his ex-spouse due to a domestic relations order, and no longer reports these as beneficially owned.
Sentiment
Score: 5
Explanation: The document reflects a routine transaction related to executive compensation and does not indicate any positive or negative sentiment.
Industry Context
This is a routine transaction for executives who receive stock-based compensation. It is common for executives to sell shares to cover tax obligations when restricted stock units vest.
Comparison to Industry Standards
- Executive stock sales to cover tax obligations are a common practice across the technology industry.
- Many companies use restricted stock units as part of their compensation packages, leading to similar sales by executives at companies like Google (Alphabet), Microsoft, and Apple.
- The volume of shares sold is relatively small compared to the total shares outstanding, and is not unusual for a company of SoundHound AI's size.
Stakeholder Impact
- The sale of shares by the CTO is unlikely to have a significant impact on shareholders, employees, customers, suppliers, or creditors.
Key Dates
| Date | Description |
|---|---|
| 08/04/2022 | Date of one of the restricted stock unit grants to the reporting person. |
| 09/07/2022 | Date of one of the restricted stock unit grants to the reporting person. |
| 08/03/2023 | Date of one of the restricted stock unit grants to the reporting person. |
| 08/01/2024 | Date of one of the restricted stock unit grants to the reporting person. |
| 11/2024 | Date of acquisition of 1,492 shares through the Employee Stock Purchase Plan. |
| 12/20/2024 | Date of the sale of 34,407 shares of Class A Common Stock. |
| 12/26/2024 | Date of the signature of the Form 4 filing. |
Keywords
SoundHound AI, insider trading, stock sale, Form 4, Timothy Stonehocker, restricted stock units, tax obligations, employee stock purchase plan, domestic relations order
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