Form 4: Tempus AI Executive Erik Phelps Sells Shares to Cover Tax Obligations

Erik Phelps, EVP & Chief Admin & Legal Off of Tempus AI, sold shares to cover statutory tax withholding obligations related to vesting restricted stock units.

Summary

• On February 5, 2025, Erik Phelps, EVP & Chief Admin & Legal Off of Tempus AI, sold 5,934 shares of Class A Common Stock at a weighted average price of $67.57.
• The sale was mandated by Tempus AI's equity incentive plans to cover statutory tax withholding obligations related to the vesting of restricted stock units.
• Following the transaction, Phelps directly owns 214,662 shares of Tempus AI's Class A Common Stock.

Sentiment

Score: 6

Explanation: The sentiment is neutral. The document reports a routine transaction related to tax obligations, which is a normal part of executive compensation. There is no indication of positive or negative implications for the company's performance.

Industry Context

Sales of shares to cover tax obligations upon vesting of restricted stock units are a common practice among executives in publicly traded companies. This ensures compliance with tax laws and allows executives to manage their equity compensation effectively.

Comparison to Industry Standards

• The 'sell to cover' practice is a standard method for handling tax obligations related to equity compensation, aligning with practices observed in similar publicly traded companies.
• Comparable companies in the tech and healthcare sectors, such as Adaptive Biotechnologies or Guardant Health, also utilize similar mechanisms for managing executive equity compensation and tax liabilities.

Stakeholder Impact

• The sale has a minimal impact on shareholders as it is a routine transaction to cover tax obligations.
• The transaction does not directly affect employees, customers, suppliers, or creditors.

Key Dates

Keywords

Form 4, Tempus AI, Erik Phelps, Stock Sale, Tax Withholding, Equity Incentive Plans, Class A Common Stock, Executive Compensation