Form 4: SoundHound AI CTO Timothy Stonehocker Reports Significant Equity Transactions, Including PSU Vesting and Tax-Related Sales
Insider Transaction Report
SoundHound AI's Chief Technology Officer, Timothy Stonehocker, reported the vesting of 70,000 performance stock units and subsequent sales of 76,143 shares, primarily for tax obligations and a pre-arranged trading plan.
Summary
- Timothy Stonehocker, Chief Technology Officer of SoundHound AI, Inc. (SOUN), reported recent stock transactions in a Form 4 filing.
- On June 20, 2025, Mr. Stonehocker acquired 70,000 shares of Class A Common Stock at a price of $0.00 per share. These shares were issued upon the vesting of Performance Stock Units (PSUs) originally granted on July 20, 2022, indicating the achievement of specific performance criteria.
- Following this acquisition, his beneficial ownership stood at 793,009 shares.
- On the same date, June 20, 2025, Mr. Stonehocker sold 33,424 shares of Class A Common Stock at $9.3559 per share to cover tax withholding obligations related to the PSU vesting.
- Additionally, on June 20, 2025, he sold another 39,738 shares of Class A Common Stock at $9.3559 per share to satisfy tax withholding obligations for the vesting of Restricted Stock Units (RSUs) granted on various dates between August 2022 and August 2024.
- On June 24, 2025, an additional 2,981 shares were sold at $9.68 per share, executed under a Rule 10b5-1 trading plan adopted in December 2024.
- After all reported transactions, Mr. Stonehocker's direct beneficial ownership of Class A Common Stock is 716,866 shares.
Sentiment
Score: 7
Explanation: The sentiment is moderately positive. While there are sales, they are primarily for tax obligations related to vested equity, which itself is a positive indicator of performance criteria being met. The Rule 10b5-1 plan sale is also a routine, pre-scheduled event, not necessarily indicative of negative sentiment.
Positives
- The vesting of 70,000 Performance Stock Units (PSUs) indicates that specific performance criteria set by the company were achieved, reflecting positively on the company's operational success and the CTO's contributions.
Negatives
- The sale of 76,143 shares by the Chief Technology Officer, while largely for tax withholding purposes, represents a reduction in his direct beneficial ownership.
Future Outlook
This Form 4 filing does not contain any forward-looking statements or guidance regarding the company's future performance or strategic outlook.
Industry Context
This filing is a routine insider transaction report and does not provide specific insights into broader industry trends or competitive landscape. It reflects standard executive compensation practices within the technology sector, where equity grants and subsequent tax-related sales are common.
Corporate Governance
| Change Type | Description | Effective Date | Impact Assessment |
|---|---|---|---|
| Delegation of Authority | Timothy Stonehocker has granted a Limited Power of Attorney to Warren Heit, Nitesh Sharan, or Keyvan Mohajer to execute and file Forms 3, 4, or 5 on his behalf in accordance with Section 16(a) of the Securities Exchange Act of 1934. | 2022-05-05 | This is a standard administrative measure to facilitate timely and compliant SEC filings for insider transactions, ensuring adherence to regulatory requirements. |
Stakeholder Impact
- Shareholders: The reported sales, while routine, slightly reduce the Chief Technology Officer's direct ownership stake. However, the vesting of PSUs indicates the achievement of performance goals, which could be viewed positively.
- Employees: The vesting of PSUs and RSUs demonstrates the company's commitment to performance-based compensation, which can be a positive signal for employee incentives.
Key Dates
| Date | Description |
|---|---|
| 2022-05-05 | Date of Limited Power of Attorney execution by Timothy Stonehocker. |
| 2022-07-20 | Original grant date of Performance Stock Units (PSUs) that vested on June 20, 2025. |
| 2022-08-04 | Grant date of Restricted Stock Units (RSUs) for which tax withholding sales occurred on June 20, 2025. |
| 2022-09-07 | Grant date of Restricted Stock Units (RSUs) for which tax withholding sales occurred on June 20, 2025. |
| 2023-08-03 | Grant date of Restricted Stock Units (RSUs) for which tax withholding sales occurred on June 20, 2025. |
| 2024-08-01 | Grant date of Restricted Stock Units (RSUs) for which tax withholding sales occurred on June 20, 2025. |
| 2024-12-01 | Approximate adoption date of the Rule 10b5-1 trading plan. |
| 2025-06-20 | Date of PSU vesting and associated tax withholding sales. |
| 2025-06-24 | Date of sale under Rule 10b5-1 trading plan and filing date of the Form 4. |
Keywords
SoundHound AI, SOUN, Timothy Stonehocker, Chief Technology Officer, SEC Form 4, Insider Trading, Stock Transactions, Performance Stock Units, Restricted Stock Units, Rule 10b5-1 Plan, Equity Compensation, Tax Withholding
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