Form 4: SoundHound AI's Chief Technology Officer Receives Stock Grant
SEC Form 4
Timothy Stonehocker, Chief Technology Officer of SoundHound AI, received a grant of 400,000 shares of Class A Common Stock on August 1, 2024, under the company's 2022 Incentive Award Plan.
Summary
- On August 1, 2024, Timothy Stonehocker, the Chief Technology Officer of SoundHound AI, Inc., was granted 400,000 shares of Class A Common Stock.
- The grant was made under the company's 2022 Incentive Award Plan.
- These restricted stock units vest over three years in approximately equal monthly installments.
- Following the transaction, Stonehocker beneficially owns 1,059,531 shares of Class A Common Stock directly.
Sentiment
Score: 7
Explanation: The document reflects a standard executive compensation practice, indicating stability and alignment of interests. It's a neutral-to-positive event.
Positives
- The grant of restricted stock units aligns the CTO's interests with the long-term success of SoundHound AI.
- The vesting schedule encourages continued service and contribution over the next three years.
Future Outlook
The document does not contain specific forward-looking statements beyond the vesting schedule of the restricted stock units.
Industry Context
Stock grants are a common practice in the tech industry to incentivize and retain key executives. This grant aligns with standard compensation practices for a company like SoundHound AI.
Comparison to Industry Standards
- Stock grants to executives are a common practice in the technology industry, used to align management's interests with those of shareholders.
- Companies like Google, Amazon, and Microsoft routinely use stock options and restricted stock units as part of their executive compensation packages.
- The vesting schedule of three years with monthly installments is fairly standard, encouraging long-term commitment from the executive.
Stakeholder Impact
- The stock grant incentivizes the CTO to drive long-term value for shareholders.
- Employees may view the grant as a positive sign of the company's commitment to its leadership.
Key Dates
| Date | Description |
|---|---|
| May 5, 2022 | Date of the Limited Power of Attorney granted by Timothy Stonehocker. |
| August 1, 2024 | Date of the transaction: grant of 400,000 shares of Class A Common Stock. |
| August 5, 2024 | Date of signature for the Form 4 filing. |
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