Rush Street Interactive (RSI) director has shares withheld to cover RSU tax bill
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
Rush Street Interactive director reports tax-related share withholding
Director Jack A. Markell reported that 3,406 shares of Rush Street Interactive Class A common stock were withheld by the company at a price of $25.42 per share. The footnote explains these shares were withheld to cover income tax obligations tied to the vesting and net settlement of previously disclosed restricted stock units and do not represent an open-market sale.
After this tax-withholding disposition, Markell directly holds 17,383 shares of Class A common stock. The transaction is compensation- and tax-driven rather than a discretionary trade in the stock.
Positive
- None.
Negative
- None.
Insider Trade Summary
1 transaction reported
Mixed
1 txn
Insider
Markell Jack A.
Role
null
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Tax Withholding | Class A Common Stock | 3,406 | $25.42 | $87K |
Holdings After Transaction:
Class A Common Stock — 17,383 shares (Direct, null)
Footnotes (1)
- [object Object]
Key Figures
Shares withheld for taxes: 3,406 shares
Withholding price per share: $25.42 per share
Shares held after transaction: 17,383 shares
3 metrics
Shares withheld for taxes
3,406 shares
Tax-withholding disposition on Class A common stock
Withholding price per share
$25.42 per share
Value used for 3,406 withheld shares
Shares held after transaction
17,383 shares
Director’s direct Class A holdings post-withholding
Key Terms
restricted stock units, income tax withholding, net settlement, tax-withholding disposition
4 terms
restricted stock units financial
"in connection with the vesting and net settlement of the Reporting Person's previously disclosed 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.
income tax withholding financial
"withheld by the Issuer to satisfy income tax withholding and remittance obligations"
net settlement financial
"in connection with the vesting and net settlement of the Reporting Person's previously disclosed restricted stock units"
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 Rush Street Interactive (RSI) disclose for Jack A. Markell?
Rush Street Interactive disclosed that director Jack A. Markell had 3,406 Class A shares withheld to satisfy income tax obligations on vesting restricted stock units. This was a tax-withholding disposition, not an open-market sale of shares by the director.
Was Jack A. Markell’s Form 4 transaction in RSI stock an open-market sale?
No, the Form 4 states the 3,406 shares were withheld by the issuer to cover income tax and remittance obligations on vested restricted stock units. The footnote clarifies this withholding does not represent a sale by Jack A. Markell in the market.
What does the tax-withholding disposition code F mean in the RSI Form 4?
Code F indicates shares were disposed of to pay the exercise price or tax liability, typically via issuer withholding. In this case, Rush Street Interactive withheld 3,406 shares from Jack A. Markell to satisfy income tax obligations on vested restricted stock units, not a market sale.