Form 4: Workday CEO Carl Eschenbach Reports Changes in Beneficial Ownership
SEC Form 4 Filing
Workday CEO Carl Eschenbach reports the disposal of shares to cover tax obligations related to vesting of performance restricted stock units.
Summary
- On June 5, 2024, Carl M. Eschenbach, CEO of Workday, Inc., reported a transaction involving Class A Common Stock.
- 11,084 shares were disposed of at a price of $211.12 to satisfy tax withholding obligations related to vesting of performance restricted stock units (PRSUs).
- Following the transaction, Eschenbach directly owns 669,808 shares of Class A Common Stock.
- This includes 283,272 restricted stock units (RSUs) and 242,918 PRSUs, each entitling him to one share of Class A Common Stock upon settlement, contingent on continued service.
- Eschenbach also indirectly owns 20,222 shares through the Eschenbach Family Trust.
- 83 shares of Class A Common Stock were purchased through the Issuer's Employee Stock Purchase Program.
Sentiment
Score: 6
Explanation: Neutral sentiment as the filing reflects routine transactions related to executive compensation and tax obligations.
Positives
- The CEO's continued holding of a significant number of shares and RSUs/PRSUs indicates a vested interest in the company's long-term performance.
- Participation in the Employee Stock Purchase Program shows confidence in Workday's future.
Industry Context
Form 4 filings are standard practice for company insiders and provide transparency regarding their transactions in the company's stock. This filing indicates routine activity related to tax obligations from vested equity.
Comparison to Industry Standards
- Similar transactions are common among executives at publicly traded companies like Salesforce (CRM) and Oracle (ORCL), where stock-based compensation is a significant part of executive pay.
- Executives often sell shares to cover tax liabilities upon vesting of restricted stock units or performance shares, aligning with standard compensation practices.
Stakeholder Impact
- The transaction has a minimal impact on shareholders as it is a routine sale to cover tax obligations.
- Employees may view the CEO's continued stock ownership positively, indicating confidence in the company.
Key Dates
| Date | Description |
|---|---|
| 04/15/2014 | Date of Eschenbach Family Trust |
| 06/05/2024 | Date of transaction: Disposal of shares for tax obligations |
| 06/11/2024 | Date of signature on the Form 4 filing |
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