Form 4: Twist Bioscience Executive Sells Shares to Cover Tax Obligations

Dennis Cho, a Senior Vice President at Twist Bioscience, sold 234 shares of common stock to cover tax withholding obligations related to the vesting of Restricted Stock Units.

Summary

• On September 20, 2024, Dennis Cho, Senior Vice President, Chief Legal Officer & Corporate Secretary of Twist Bioscience Corp, sold 234 shares of common stock.
• The sale was executed at a price of $46.941 per share.
• The transaction was conducted to cover tax withholding obligations associated with the vesting of Restricted Stock Units.
• Following the transaction, Cho directly owns 78,393 shares of Twist Bioscience Corp.
• The sale was mandated by the Issuer's election under its equity incentive plans to require the satisfaction of a tax withholding obligation to be funded by a 'sell to cover' transaction and do not represent discretionary trades by the Reporting Person.

Sentiment

Score: 6

Explanation: The document describes a routine transaction (sell to cover taxes) and doesn't indicate any significant positive or negative sentiment. It's a neutral disclosure.

Management Comments

• The sales are mandated by the Issuer's election under its equity incentive plans to require the satisfaction of a tax withholding obligation to be funded by a 'sell to cover' transaction and do not represent discretionary trades by the Reporting Person.

Industry Context

Executive stock sales to cover tax obligations are a common practice in publicly traded companies, particularly following the vesting of stock options or restricted stock units. This allows executives to manage their tax liabilities without necessarily indicating a lack of confidence in the company's future prospects.

Comparison to Industry Standards

• Executive compensation practices, including the use of restricted stock units and 'sell to cover' arrangements for tax obligations, are standard across the biotechnology industry.
• Companies like Illumina, Thermo Fisher Scientific, and Danaher also utilize similar equity compensation plans for their executives.

Stakeholder Impact

• The transaction has a minimal impact on shareholders as it is a small sale related to tax obligations.

Key Dates