Form 4: TKO Group Holdings Executive Sells Shares to Cover Tax Obligations
SEC Form 4 Filing
TKO Group Holdings' President and COO, Mark S. Shapiro, sold 31,666 shares of Class A Common Stock to cover tax obligations related to vesting equity awards.
Summary
- Mark S. Shapiro, President and Chief Operating Officer of TKO Group Holdings, executed transactions involving the company's Class A Common Stock.
- On January 2, 2025, 63,187 restricted stock units (RSUs) vested, converting into Class A Common Stock.
- On January 3, 2025, Mr. Shapiro sold 31,666 shares of Class A Common Stock at a weighted average price of $141.94 per share.
- The sale was conducted under a pre-arranged Rule 10b5-1 trading plan to cover tax obligations arising from the vesting of equity awards.
- Following these transactions, Mr. Shapiro directly owns 73,677 shares of Class A Common Stock and 189,562 restricted stock units.
Sentiment
Score: 5
Explanation: The document reflects a routine transaction by an executive to manage tax obligations. It is neither positive nor negative for the company's outlook.
Industry Context
This is a routine transaction for executives who receive equity compensation. It is common for executives to sell shares to cover tax obligations when equity awards vest.
Comparison to Industry Standards
- The use of Rule 10b5-1 trading plans is a standard practice for corporate insiders to avoid accusations of insider trading.
- The sale of shares to cover tax obligations is a common practice among executives receiving equity compensation.
- The reported weighted average price of $141.94 is a specific price for this transaction and would need to be compared to the market price of TKO stock at the time of the transaction to assess if it was a fair market price.
Stakeholder Impact
- The sale of shares by an executive may have a minor impact on the stock price, but it is generally considered a normal part of executive compensation.
Key Dates
| Date | Description |
|---|---|
| 2023-11-14 | Date of the Rule 10b5-1 instruction letter. |
| 2024-01-21 | Date of grant of 252,749 RSUs to the Reporting Person. |
| 2024-12-31 | First vesting date of the 252,749 RSUs. |
| 2025-01-02 | Date of vesting of 63,187 RSUs and conversion to Class A Common Stock. |
| 2025-01-03 | Date of sale of 31,666 shares of Class A Common Stock. |
| 2025-01-06 | Date of signature of the Form 4 filing. |
Keywords
TKO Group Holdings, Mark S. Shapiro, Class A Common Stock, Restricted Stock Units, Rule 10b5-1, Insider Trading, Equity Awards, Tax Obligations
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