Reshma Shetty of Ginkgo Bioworks (DNA) sells shares to cover tax after PSU vesting
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
Ginkgo Bioworks Holdings director/officer Reshma P. Shetty exercised performance-based stock units and sold shares to cover taxes. On April 9, 2026, 251,786 performance-based restricted stock units vested and converted into Class A Common Stock based on a company-wide cash flow target achieved at 67% of goal.
These units came from a June 19, 2025 grant of 375,800 PSUs tied to cash flow performance for the period from January 1, 2025 to December 31, 2025. On April 10, 2026, 124,727 shares of Class A Common Stock were sold solely to satisfy tax withholding obligations under the company’s equity incentive plans through a required “sell to cover” transaction, which the disclosure states was not a discretionary trade. After these transactions, Shetty directly held 436,422 shares of Class A Common Stock.
Positive
- None.
Negative
- None.
Insider Trade Summary
Net Seller: 124,727 shares ($802,494)
Net Sell
3 txns
Insider
Shetty Reshma P.
Role
See remarks
Sold
124,727 shs ($802K)
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Sale | Class A Common Stock | 124,727 | $6.434 | $802K |
| Exercise | Performance-Based Restricted Stock Unit | 251,786 | $0.00 | -- |
| Exercise | Class A Common Stock | 251,786 | $0.00 | -- |
Holdings After Transaction:
Class A Common Stock — 436,422 shares (Direct);
Performance-Based Restricted Stock Unit — 0 shares (Direct)
Footnotes (1)
- Each performance-based restricted stock unit ("PSU") represents a contingent right to receive one share of the Issuer's Class A Common Stock. Represents shares sold by the Reporting Person to cover tax withholding obligations in connection with the vesting of PSUs. Sales to cover tax withholding obligations in connection with the vesting of such securities do not represent discretionary trades by the Reporting Person. The Issuer's equity incentive plans allow the Issuer to require that satisfaction of tax withholding obligations be funded by a "sell to cover" transaction. On June 19, 2025, the Reporting Person was granted 375,800 PSUs based on a company-wide cash flow reduction target over a one-year period beginning on January 1, 2025 and ending on December 31, 2025. The total number of vested PSUs distributed by Issuer on April 9, 2026 in the form of Class A Common Stock reflects actual performance equal to 67% of target performance, as certified by the Compensation Committee of the Board of Directors.
Key Figures
Shares sold to cover taxes: 124,727 shares at $6.434
PSUs vested into stock: 251,786 units
Shares held after transactions: 436,422 shares
+3 more
6 metrics
Shares sold to cover taxes
124,727 shares at $6.434
Class A Common Stock sale on April 10, 2026
PSUs vested into stock
251,786 units
Performance-based restricted stock units vesting on April 9, 2026
Shares held after transactions
436,422 shares
Direct Class A Common Stock holdings following Form 4 transactions
Original PSU grant
375,800 PSUs
Grant to Shetty on June 19, 2025 tied to cash flow target
Performance vs. PSU target
67%
Certified performance relative to PSU target determining vested units
Performance period
January 1, 2025–December 31, 2025
One-year company-wide cash flow reduction measurement window
Key Terms
performance-based restricted stock unit, sell to cover, equity incentive plans, tax withholding obligations, +1 more
5 terms
performance-based restricted stock unit financial
"Each performance-based restricted stock unit ("PSU") represents a contingent right to receive one share"
A performance-based restricted stock unit is a promise of company shares given to an employee that only becomes actual stock if specific performance targets are met and any required time at the company is completed. For investors, these awards matter because they can dilute existing shares when earned and signal management’s confidence or the company’s expected future performance, much like a bonus cheque that only clears when pre-set goals are reached.
sell to cover financial
"tax withholding obligations be funded by a "sell to cover" transaction"
Sell to cover is when a person who receives company stock through options or awards sells just enough shares immediately to pay required taxes, exercise costs, or fees, keeping the rest. Think of it like cashing part of a bonus to cover the tax bill so you can keep the remainder. For investors, it can create predictable small selling pressure and slightly change the number of shares actually held by insiders without increasing long‑term dilution.
equity incentive plans financial
"The Issuer's equity incentive plans allow the Issuer to require that satisfaction of tax withholding obligations"
Equity incentive plans are company programs that pay employees, executives, or directors with company stock, stock options, or share units instead of or in addition to cash, aiming to align their interests with shareholders—like giving team members a stake in the house they help build. For investors this matters because such plans can motivate better company performance but also dilute existing ownership and increase reported compensation costs, so they affect future earnings, voting power, and share value.
tax withholding obligations financial
"shares sold by the Reporting Person to cover tax withholding obligations in connection with the vesting of PSUs"
Class A Common Stock financial
"receive one share of the Issuer's Class A Common Stock"
Class A common stock is a category of a company’s shares that carries a specific set of ownership rights—most commonly defined voting power and claims on dividends—set out in the company’s charter. For investors it matters because the class determines how much influence you have over corporate decisions, the share’s likely dividend and trading behavior, and how it compares in value to other share classes, like choosing a particular seat with different privileges at the company’s decision-making table.
FAQ
What insider transactions did Ginkgo Bioworks (DNA) report for Reshma P. Shetty?
Ginkgo Bioworks reported that Reshma P. Shetty had 251,786 performance-based restricted stock units vest into Class A Common Stock, then sold 124,727 shares. The sale was specifically to cover tax withholding obligations related to that vesting under the company’s equity incentive plans.
What performance conditions were tied to Reshma P. Shetty’s Ginkgo Bioworks (DNA) PSUs?
On June 19, 2025, Shetty received 375,800 performance-based restricted stock units linked to a company-wide cash flow reduction target over a one-year period from January 1, 2025 to December 31, 2025. Vesting at 251,786 units reflects performance certified at 67% of the original target.
What are performance-based restricted stock units in the Ginkgo Bioworks (DNA) filing?
Each performance-based restricted stock unit represents a contingent right to receive one share of Ginkgo Bioworks Class A Common Stock. In this case, 251,786 such units vested based on a certified company-wide cash flow reduction performance result equal to 67% of the original PSU grant target.