Form 4: Tempus AI CFO Sells Shares to Cover Tax Obligations

Tempus AI's Chief Financial Officer, James William Rogers, sold 1,468 shares of Class A Common Stock to cover tax obligations related to vesting restricted stock units.

Summary

• James William Rogers, the Chief Financial Officer of Tempus AI, Inc., sold 1,468 shares of Class A Common Stock on December 16, 2024.
• The sale was executed to cover statutory tax withholding obligations associated with the vesting of restricted stock units.
• The shares were sold at a weighted average price of $40.23, with individual transactions ranging from $40.00 to $40.56.
• Following the transaction, Rogers beneficially owns 229,812 shares of Class A Common Stock.

Sentiment

Score: 5

Explanation: The document reflects a routine transaction for tax purposes, not indicative of positive or negative sentiment.

Management Comments

• The sale was mandated by the Issuer's election under its equity incentive plans to require the satisfaction of minimum statutory tax withholding obligations to be funded by a 'sell to cover' transaction and does not represent a discretionary sale by the Reporting Person.

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

• Many companies use 'sell to cover' mechanisms for tax obligations related to stock-based compensation.
• The sale of shares by executives to cover taxes is a common practice across the industry and is not unusual.
• The price range of $40.00 to $40.56 is within the expected range for a stock sale of this type.

Stakeholder Impact

• The sale has a minimal impact on shareholders as it is a routine transaction for tax purposes.

Key Dates

Keywords

Tempus AI, insider trading, Form 4, stock sale, tax obligations, restricted stock units, Class A Common Stock, James William Rogers, CFO