DigitalOcean (DOCN) exec has 498 shares withheld to cover RSU tax
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
DigitalOcean Holdings, Inc. reported a Form 4 for Chief Product & Tech Officer Vinay S. Kumar showing a tax-related share disposition. On this date, 498 shares of common stock were withheld by the company to cover his tax obligations from the vesting of restricted stock units. After this withholding, he directly holds 312,438 shares of DigitalOcean common stock. This event reflects a compensation-related tax withholding rather than an open-market trade.
Positive
- None.
Negative
- None.
Insider Trade Summary
1 transaction reported
Mixed
1 txn
Insider
Kumar Vinay S.
Role
Chief Product & Tech Officer
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Tax Withholding | Common Stock | 498 | $155.95 | $78K |
Holdings After Transaction:
Common Stock — 312,438 shares (Direct, null)
Footnotes (1)
- [object Object]
Key Figures
Shares withheld for tax: 498 shares
Price per share: $155.95 per share
Shares held after transaction: 312,438 shares
+1 more
4 metrics
Shares withheld for tax
498 shares
Tax-withholding disposition on common stock
Price per share
$155.95 per share
Value used for 498-share tax-withholding transaction
Shares held after transaction
312,438 shares
Direct holdings after tax withholding
Tax-withholding share count
498 shares
Reported in transactionSummary as taxWithholdingShares
Key Terms
restricted stock units, tax withholding obligations, withholding of shares, tax-withholding disposition
4 terms
restricted stock units financial
"in connection with the non-reportable vesting and settlement of restricted stock units"
Restricted stock units are a type of company reward where employees are promised shares of stock, but they only fully own these shares after meeting certain conditions, like staying with the company for a set time. They matter because they can become valuable assets and are often used to motivate employees to help the company succeed.
tax withholding obligations financial
"withholding of shares by the Issuer to satisfy the Reporting Person's tax withholding obligations"
tax-withholding disposition financial
"transaction_action: "tax-withholding disposition""
A tax-withholding disposition is an event or transaction—such as selling or transferring securities, exercising options, or receiving compensation—that triggers a requirement to hold back part of the payment and remit it to tax authorities. It matters to investors because it reduces the cash they receive immediately and can change the timing and amount of taxable income, like a cashier taking a portion of your sale proceeds to pay taxes before you get the rest.
FAQ
What insider transaction did DigitalOcean (DOCN) report for Vinay S. Kumar?
DigitalOcean reported that Chief Product & Tech Officer Vinay S. Kumar had 498 common shares withheld. The shares satisfied tax obligations arising from vesting restricted stock units, and were not part of an open-market purchase or sale.
Was the DigitalOcean (DOCN) insider transaction an open-market sale or purchase?
The transaction was not an open-market sale or purchase. It was a tax-withholding disposition, where 498 shares were withheld by DigitalOcean to cover Vinay S. Kumar’s tax obligations from vesting restricted stock units.
What does the F transaction code mean in the DigitalOcean (DOCN) Form 4?
The F transaction code indicates a tax-withholding disposition. In this case, 498 DigitalOcean shares were delivered back to the issuer to satisfy Vinay S. Kumar’s tax liability related to the vesting and settlement of restricted stock units.