Tax-driven share sale by Honest (HNST) CEO after RSU vesting
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
Honest Company, Inc. CEO Carla Vernon reported an open-market sale of 119,389 shares of common stock at a weighted average price of $3.14 per share. According to the disclosure, this transaction was executed under an approved sell-to-cover plan solely to satisfy tax liabilities triggered by the vesting of previously granted Restricted Stock Units. After the sale, she directly holds 3,946,451 shares of common stock and also has 2,590,464 RSUs that are payable in an equivalent number of Honest common shares.
Positive
- None.
Negative
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Insider Trade Summary 10b5-1
Net Seller: 119,389 shares ($374,881)
Net Sell
1 txn
Insider
Vernon Carla
Role
Chief Executive Officer
Sold
119,389 shs ($375K)
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Sale | Common Stock | 119,389 | $3.14 | $375K |
Holdings After Transaction:
Common Stock — 3,946,451 shares (Direct, null)
Footnotes (1)
- Pursuant to the approved sell-to-cover plan by the Compensation Committee for all executive officers, shares were sold solely to cover the associated tax liability upon the vesting of a previously granted award of Restricted Stock Units (RSUs). The price reported in Column 4 is a weighted average price. These shares were sold in multiple transactions at prices ranging from $3.14 to $3.19, inclusive. The reporting person undertakes to provide to 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 above. Includes 2,590,464 RSUs which are payable in an equivalent number of shares of the Issuer's common stock.
Key Figures
Shares sold: 119,389 shares
Weighted average sale price: $3.14 per share
Sale price range: $3.14–$3.19 per share
+2 more
5 metrics
Shares sold
119,389 shares
Open-market sale on 2026-05-20
Weighted average sale price
$3.14 per share
Common stock sale
Sale price range
$3.14–$3.19 per share
Multiple transactions within range
Shares held after transaction
3,946,451 shares
Direct common stock ownership post-sale
Outstanding RSUs
2,590,464 RSUs
Each RSU payable in one common share
Key Terms
sell-to-cover plan, Restricted Stock Units (RSUs), weighted average price, vesting
4 terms
sell-to-cover plan financial
"Pursuant to the approved sell-to-cover plan by the Compensation Committee for all executive officers..."
Restricted Stock Units (RSUs) financial
"upon the vesting of a previously granted award of Restricted Stock Units (RSUs)."
Restricted stock units (RSUs) are a type of company promise to give employees shares of stock in the future, usually after certain conditions like working for a set time. They are like a gift promised today that you receive later, which can become valuable if the company's stock price goes up. RSUs matter because they are a way companies reward employees and can be a significant part of compensation.
weighted average price financial
"The price reported in Column 4 is a weighted average price."
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.
vesting financial
"tax liability upon the vesting of a previously granted award of Restricted Stock Units (RSUs)."
Vesting is the process by which you earn full ownership of something, like company stock or a retirement benefit, over time. It’s like earning the right to keep a gift piece by piece the longer you stay with a company, making sure employees stay committed before they receive all the benefits.