CS Disco (NYSE: LAW) CEO covers tax bill with share withholding
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
CS Disco, Inc. reported that CEO Eric Friedrichsen had 44,492 shares of common stock withheld at $3.83 per share to cover tax liabilities on a vesting restricted stock award. This was not a discretionary sale, and he now directly holds 1,472,680 shares.
Positive
- None.
Negative
- None.
Insider Trade Summary
1 transaction reported
Mixed
1 txn
Insider
Friedrichsen Eric
Role
Chief Executive Officer
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Tax Withholding | Common Stock | 44,492 | $3.83 | $170K |
Holdings After Transaction:
Common Stock — 1,472,680 shares (Direct, null)
Footnotes (1)
- [object Object]
Key Figures
Shares withheld for taxes: 44,492 shares
Withholding reference price: $3.83 per share
Shares held after transaction: 1,472,680 shares
3 metrics
Shares withheld for taxes
44,492 shares
Tax-withholding disposition on time-based restricted stock vesting
Withholding reference price
$3.83 per share
Value used for 44,492 withheld shares
Shares held after transaction
1,472,680 shares
CEO direct common stock ownership after withholding
Key Terms
tax-withholding disposition, restricted stock award, discretionary sale
3 terms
tax-withholding disposition financial
"transaction_action: tax-withholding disposition associated with code F"
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.
restricted stock award financial
"tax liability upon the vesting of a time-based restricted stock award"
A restricted stock award is company shares given to an employee or executive that cannot be sold or fully owned until certain conditions—like staying with the company for a set time or hitting performance targets—are met. Think of it as a gift that only becomes yours after you fulfill specific obligations; for investors, these awards matter because they can increase the total shares outstanding when they vest, reveal how management is being paid and motivated, and create potential selling pressure when restrictions lift.
discretionary sale financial
"does not represent a discretionary sale by the reporting person"
FAQ
What insider transaction did CS Disco (LAW) report for CEO Eric Friedrichsen?
CS Disco reported a tax-withholding disposition for CEO Eric Friedrichsen. The company withheld 44,492 common shares at $3.83 each to cover taxes due on a vesting restricted stock award, rather than him selling shares on the open market.
Was the CS Disco (LAW) CEO’s Form 4 transaction an open-market sale?
No, the CEO’s transaction was not an open-market sale. The 44,492 shares were withheld by CS Disco to satisfy tax liabilities from a vesting restricted stock award and, as stated, did not represent a discretionary sale by the reporting person.
What does transaction code F mean in the CS Disco (LAW) Form 4 filing?
Transaction code F indicates shares were disposed to pay exercise price or taxes. In this case, 44,492 CS Disco shares were withheld by the issuer to cover the CEO’s tax liability on a vesting restricted stock award, not sold on the market.