Form 4: Udemy Director Paterson Receives Stock Units in Lieu of Cash Retainer

Director Lydia Paterson acquired 1,738 restricted stock units (RSUs) from Udemy, Inc. on June 30, 2024, in lieu of a quarterly cash retainer.

Summary

• Lydia Paterson, a director of Udemy, Inc., reported a transaction on June 30, 2024, where she acquired 1,738 shares of common stock in the form of restricted stock units (RSUs).
• These RSUs were granted under the Issuer's 2021 Equity Incentive Plan and vest immediately upon grant.
• Paterson elected to receive these RSUs instead of a quarterly cash retainer and has deferred the settlement of the RSUs until her separation of service from Udemy.
• Following this transaction, Paterson beneficially owns 60,611 shares of Udemy common stock.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The director receiving stock units in lieu of cash suggests confidence in the company's stock value. The immediate vesting is also a positive sign.

Positives

• The acquisition of RSUs by a director signals confidence in the company's future.
• The immediate vesting of the RSUs incentivizes the director to contribute to the company's success.

Future Outlook

The director has deferred the settlement of the RSUs until separation of service, indicating a longer-term commitment to the company.

Industry Context

This type of equity compensation is common for directors and executives in publicly traded companies to align their interests with those of shareholders.

Comparison to Industry Standards

• Granting RSUs to directors is a standard practice among publicly listed companies, such as Coursera and Skillsoft, to align their interests with shareholders.
• The vesting schedule, in this case immediate, can vary, with some companies opting for phased vesting over several years to ensure continued service and commitment.

Stakeholder Impact

• Shareholders may view the director's acquisition of RSUs positively, as it aligns her interests with the company's long-term success.
• Employees may see this as a sign of stability and confidence in the company's leadership.

Key Dates