I can confirm that Karim's sale was due to taxes and zero cash went into his pockets. The footnotes on his form 4 say: "Shares sold to satisfy withholding tax obligations upon the delivery of shares of common stock for restricted stock units that vested on September 1, 2023."
So he got a very large stock award when he was hired in Sep'22. That award of 1.35M shares vests annually in four equal installements each September through 2026. So he had 336K shares vest on 9/1 and a week later "sold" 167K shares - but really these shares were withheld as one might have taxes withheld from their paycheck. That's a withholding rate of ~50% which is high, but he's probably in a very high tax bracket (federal and state) and the disclosure was quite explicit on the "sale" being entirely a withholding.
And (not to get too in the weeds here), many companies choose to use a different coding on their form 4s such that withholdings do not show up on form 4s as sales at all but rather as transfers. But it's not uncommon for these transactions to be coded as a sale, and that's what CDLX has done here.
I can confirm that Karim's sale was due to taxes and zero cash went into his pockets. The footnotes on his form 4 say: "Shares sold to satisfy withholding tax obligations upon the delivery of shares of common stock for restricted stock units that vested on September 1, 2023."
So he got a very large stock award when he was hired in Sep'22. That award of 1.35M shares vests annually in four equal installements each September through 2026. So he had 336K shares vest on 9/1 and a week later "sold" 167K shares - but really these shares were withheld as one might have taxes withheld from their paycheck. That's a withholding rate of ~50% which is high, but he's probably in a very high tax bracket (federal and state) and the disclosure was quite explicit on the "sale" being entirely a withholding.
And (not to get too in the weeds here), many companies choose to use a different coding on their form 4s such that withholdings do not show up on form 4s as sales at all but rather as transfers. But it's not uncommon for these transactions to be coded as a sale, and that's what CDLX has done here.
Confirmed: The reason for Karim's sale is taxes