Form 4: ThredUp Director Timothy Haley Receives Stock Units in Lieu of Cash Retainer

Director Timothy Haley of ThredUp Inc. received fully vested restricted stock units (RSUs) in lieu of his annual cash retainer.

Summary

• Timothy Haley, a director at ThredUp Inc., filed a Form 4 indicating a change in beneficial ownership.
• On July 24, 2024, Haley acquired 7,713 shares of Class A Common Stock through the grant of fully vested restricted stock units (RSUs).
• The RSUs were granted under the Issuer's 2021 Stock Option and Incentive Plan and are exempt under Rule 16b-3.
• Each RSU represents the right to receive one share of ThredUp's Class A Common Stock.
• Haley elected to receive RSUs in lieu of his annual cash retainer, which is paid in quarterly installments.
• Following the transaction, Haley beneficially owns 227,022 shares of Class A Common Stock directly.

Sentiment

Score: 6

Explanation: The sentiment is neutral. It's a routine filing related to executive compensation. The director taking equity instead of cash could be seen as a slightly positive signal.

Positives

• Director's decision to take equity instead of cash may signal confidence in the company's future performance.

Future Outlook

The document does not contain any specific forward-looking statements.

Industry Context

This filing reflects standard executive compensation practices, where stock-based compensation is used to align the interests of directors with those of shareholders.

Comparison to Industry Standards

• Granting stock options or restricted stock units (RSUs) to directors is a common practice among publicly traded companies, including companies like Poshmark and The RealReal, to incentivize performance and align their interests with shareholders.
• The amount of equity granted to directors varies based on company size, industry, and individual contributions, but the practice of offering equity in lieu of cash compensation is not uncommon.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders as it aligns the director's interests with the company's performance.

Key Dates