Freshworks (FRSH) CAO Lawrence Philippa reports RSU tax-withholding share disposition
Rhea-AI Filing Summary
Freshworks Inc. Chief Accounting Officer Lawrence Philippa reported a routine tax-related share disposition. On the transaction date, 14,368 shares of Class A common stock were withheld at $10.68 per share to cover tax obligations tied to previously granted RSUs vesting. After this withholding, Philippa directly held 476,353 shares of Class A common stock. A footnote also notes 890 shares were acquired earlier through the company’s Employee Stock Purchase Plan at 85% of the May 15, 2026 closing price.
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Insider Trade Summary
Net Seller: 14,368 shares
Net Sell
1 txn
Insider
Lawrence Philippa
Role
Chief Accounting Officer
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise Price or Tax Liability | Class A Common Stock | 14,368 | $10.68 | $153K |
Holdings After Transaction:
Class A Common Stock — 476,353 shares (Direct)
Footnotes (2)
- F1. Units withheld to satisfy tax withholding obligations due in connection with the vesting of RSUs previously granted to the Reporting Person on September 1, 2024.
- F2. Includes 890 shares of Class A common stock purchased pursuant to the Issuer's Employee Stock Purchase Plan (ESPP) for the ESPP purchase period from November 17, 2025 through May 15, 2025. This transaction is exempt from Rule 16b-3(c). In accordance with the ESPP, these shares were purchased at a price equal to 85% of the closing price of the Issuer's Class A common stock on May 15, 2026.
Key Figures
Shares withheld for taxes: 14,368 shares
Withholding price: $10.68 per share
Shares held after transaction: 476,353 shares
+1 more
4 metrics
Shares withheld for taxes
14,368 shares
Class A common stock withheld for RSU tax obligations at $10.68 per share
Withholding price
$10.68 per share
Price used for 14,368 Class A shares withheld for tax obligations
Shares held after transaction
476,353 shares
Direct Class A common stock holdings after tax-withholding disposition
ESPP shares
890 shares
Class A shares purchased via ESPP at 85% of May 15, 2026 closing price
Key Terms
RSUs, Employee Stock Purchase Plan (ESPP), tax withholding obligations, Rule 16b-3(c)
4 terms
RSUs financial
"Units withheld to satisfy tax withholding obligations due in connection with the vesting of RSUs previously granted"
RSUs, or restricted stock units, are a form of company shares given to employees as part of their compensation. They are typically awarded with certain restrictions, such as a waiting period before they can be fully owned or sold, similar to earning a gift that becomes fully yours over time. For investors, RSUs can impact a company's stock offerings and reflect how much the company relies on stock-based incentives to attract and retain talent.
Employee Stock Purchase Plan (ESPP) financial
"Includes 890 shares of Class A common stock purchased pursuant to the Issuer's Employee Stock Purchase Plan (ESPP)"
tax withholding obligations financial
"Units withheld to satisfy tax withholding obligations due in connection with the vesting of RSUs"
Rule 16b-3(c) regulatory
"This transaction is exempt from Rule 16b-3(c)."
An SEC rule that lets corporate insiders avoid automatic "short‑swing" profit recovery when they buy or sell their company’s stock under a pre‑approved, written plan that meets specific conditions. For investors, it matters because it clarifies when insider trades are treated as routine, reducing legal uncertainty and helping distinguish trades made for ordinary compensation or pre‑planned reasons from those that might signal opportunistic or timely insider advantage.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What insider transaction did Freshworks (FRSH) report for Lawrence Philippa?
Freshworks reported that Chief Accounting Officer Lawrence Philippa had 14,368 Class A shares withheld to satisfy tax obligations from RSU vesting. This was a tax-withholding disposition, not an open-market sale, and is a common administrative transaction tied to equity compensation.
Was the Freshworks (FRSH) insider transaction an open-market sale?
No, the transaction was not an open-market sale. The 14,368 shares of Class A common stock were withheld to satisfy tax withholding obligations from RSU vesting, which is an administrative disposition rather than a discretionary sale into the market.
What role did RSUs play in the Freshworks (FRSH) Form 4 filing?
The Form 4 states that shares were withheld to cover taxes due on the vesting of RSUs previously granted to Lawrence Philippa on September 1, 2024. These restricted stock units converted into shares, triggering tax obligations satisfied through share withholding.
What does the ESPP footnote in the Freshworks (FRSH) Form 4 indicate?
A footnote explains that holdings include 890 Class A shares purchased through Freshworks’ Employee Stock Purchase Plan. These ESPP shares were bought at 85% of the May 15, 2026 closing price, under an exempt plan-based purchase arrangement rather than an open-market trade.