Form 4: ThredUp CEO Awarded 1.34 Million Restricted Stock Units

ThredUp's CEO, James G. Reinhart, was granted 1.34 million restricted stock units (RSUs) on January 9, 2025, which will vest quarterly over three years.

Summary

• James G. Reinhart, the CEO of ThredUp Inc., received 1,340,000 restricted stock units (RSUs) on January 9, 2025.
• These RSUs represent a contingent right to receive one share of ThredUp's Class A Common Stock for each unit.
• The RSUs will vest in twelve equal quarterly installments, starting on June 1, 2025, and continuing on September 1, December 1, and March 1 until fully vested.
• Vesting is contingent upon Mr. Reinhart's continued service to ThredUp on each vesting date.
• Following this transaction, Mr. Reinhart directly owns 3,180,171 shares of Class A Common Stock.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, which is generally viewed positively as it aligns management's interests with shareholders. There are no negative implications or surprises.

Positives

• The grant of RSUs aligns the CEO's interests with those of the shareholders.
• The vesting schedule encourages long-term commitment from the CEO.

Risks

• The vesting of the RSUs is contingent on the CEO's continued employment, which could be a risk if he were to leave the company before full vesting.

Future Outlook

The CEO's compensation is tied to the company's performance through the vesting of the RSUs, incentivizing him to drive long-term value.

Industry Context

The granting of stock-based compensation is a common practice in the tech industry to attract and retain top talent, aligning executive interests with shareholder value.

Comparison to Industry Standards

• Stock-based compensation, such as RSUs, is a standard practice for executive compensation in publicly traded companies, particularly in the technology sector.
• Companies like Etsy, Poshmark, and Farfetch also use similar equity-based compensation structures for their executives.
• The vesting schedule of the RSUs is typical, with quarterly vesting over a three-year period being a common approach to ensure long-term commitment.

Stakeholder Impact

• Shareholders may view the RSU grant positively as it aligns the CEO's interests with the company's long-term success.
• Employees may see this as a sign of the company's commitment to its leadership.

Next Steps

• The RSUs will continue to vest quarterly based on the schedule outlined in the document.
• The CEO will need to remain employed by ThredUp to receive the full benefit of the RSUs.

Key Dates

Keywords

restricted stock units, RSU, executive compensation, stock options, insider trading, ThredUp, CEO, James G. Reinhart