CAVA CEO sells shares to cover RSU taxes
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Form Type
4
Rhea-AI Filing Summary
CAVA GROUP, INC. CEO and President Brett Schulman reported an open-market sale of 33,174 shares of Common Stock at a weighted average price of $89.43 per share. According to the disclosure, these shares were sold to satisfy tax withholding obligations arising from the vesting of restricted stock units under the company’s equity incentive plans and were not discretionary trades.
After the transaction, Schulman directly holds 798,669 shares of Common Stock. He also has indirect ownership interests, including 682,710 shares held by an LLC, 57,495 shares held by his spouse, and 150 shares held by his daughter, and the indirect holdings include unvested RSUs.
Insider Trade Summary
Net Seller: 33,174 shares
Net Sell
4 txns
Insider
Schulman Brett
Role
CEO and President
Sold
33,174 shs ($2.97M)
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Sale | Common Stock | 33,174 | $89.43 | $2.97M |
| holding | Common Stock | -- | -- | -- |
| holding | Common Stock | -- | -- | -- |
| holding | Common Stock | -- | -- | -- |
Holdings After Transaction:
Common Stock — 798,669 shares (Direct);
Common Stock — 57,495 shares (Indirect, By Spouse);
Common Stock — 682,710 shares (Indirect, By LLC);
Common Stock — 150 shares (Indirect, By Daughter)
Footnotes (3)
- F1. The sales reported on this Form 4 represent shares of Common Stock required to be sold by the Reporting Person to cover tax withholding obligations in connection with the vesting of restricted stock units ("RSUs"). These sales are mandated by the Issuer's election under its equity incentive plans to require the satisfaction of tax withholding obligations to be funded by a "sell to cover" transaction and do not represent discretionary trades by the Reporting Person.
- F2. The price reported in column 4 represents the weighted average price of 69,803 shares of Common Stock sold by the broker on behalf of employees of the Issuer as a result of mandatory sell to cover transactions associated with the vesting of RSUs. These shares were sold in multiple transactions at prices ranging from $89.00 to $89.87, inclusive. The proceeds of all such sales were allocated to the employees, including the Reporting Person, on a pro rata basis. The Reporting Person undertakes to provide to the Issuer, any securityholder of the Issuer, or the staff of the Securities and Exchange Commission, upon request, full information regarding the number of shares sold at each separate price within the range set forth in this footnote (2) to this Form 4.
- F3. Includes unvested RSUs.
Key Figures
Shares sold: 33,174 shares
Weighted average sale price: $89.43/share
Direct holdings after sale: 798,669 shares
+5 more
8 metrics
Shares sold
33,174 shares
Open-market sale to cover RSU tax withholding
Weighted average sale price
$89.43/share
Price for shares sold on behalf of employees
Direct holdings after sale
798,669 shares
CEO direct CAVA Common Stock position post-transaction
Indirect LLC holdings
682,710 shares
Indirect ownership labeled "By LLC"
Indirect spouse holdings
57,495 shares
Indirect ownership labeled "By Spouse"
Indirect daughter holdings
150 shares
Indirect ownership labeled "By Daughter"
Employee shares in price average
69,803 shares
Total sold by broker for employees in RSU tax sales
Sale price range
$89.00–$89.87/share
Range of prices for broker’s multiple transactions
Key Terms
restricted stock units ("RSUs"), sell to cover, weighted average price, equity incentive plans, +1 more
5 terms
restricted stock units ("RSUs") financial
"to cover tax withholding obligations in connection with the vesting of restricted stock units ("RSUs")."
Restricted stock units (RSUs) are a company promise to give an employee shares of stock (or cash equivalent) in the future, but only after certain conditions—usually staying with the company for a set time or hitting performance goals—are met. Investors watch RSUs because when they vest they increase the number of shares outstanding and can lead insiders to sell shares, affecting share price, company dilution and the true cost of employee pay.
sell to cover financial
"require the satisfaction of tax withholding obligations to 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.
weighted average price financial
"The price reported in column 4 represents the weighted average price of 69,803 shares"
Weighted average price is the average price of a security where each trade or component is counted according to its size, so bigger trades pull the average more than smaller ones. Think of it like calculating the average cost of a grocery haul where items you bought more of have greater influence on the final per-item cost. Investors use it to understand the true average price paid or received, judge execution quality, and compare trading performance against market movement.
equity incentive plans financial
"mandated by the Issuer's election under its equity incentive plans to require the satisfaction of tax"
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.
unvested RSUs financial
"Includes unvested RSUs."
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What insider transaction did CAVA (CAVA) CEO Brett Schulman report?
Brett Schulman reported selling 33,174 CAVA Common Stock shares. The filing states these shares were sold to cover tax withholding obligations linked to vesting restricted stock units, under the company’s equity incentive plans, rather than being discretionary market trades.
Why did the CAVA (CAVA) CEO’s Form 4 sale occur at this time?
The sale occurred to fund tax withholding obligations from RSU vesting. The company’s equity plans require a “sell to cover” transaction, meaning shares are automatically sold to pay taxes when restricted stock units vest for employees, including the CEO.
Does the CAVA (CAVA) Form 4 describe the CEO’s sale as discretionary trading?
No. The footnotes explain the sales are mandated “sell to cover” transactions. They are required under CAVA’s equity incentive plans to satisfy tax withholding on RSU vesting, and the filing explicitly states they do not represent discretionary trades by the CEO.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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