STEM CEO logs tax-related share sale and PSU vest
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Form Type
4
Rhea-AI Filing Summary
STEM, INC. Chief Executive Officer Arun Narayanan reported compensation-related stock activity tied to performance awards. On June 30, 2026, 8,125 performance stock units converted into the same number of common shares after the company met a defined share-price performance goal.
To cover related tax obligations, 1,996 common shares were automatically sold in an open-market transaction at $7.85 per share on July 2, 2026, a non‑discretionary "sell to cover" trade. Following these transactions, Narayanan held 19,109 common shares directly.
Insider Trade Summary
Exercise and sale activity reported; no spread calculated
Exercise and Sale
3 txns
Insider
Narayanan Arun
Role
Chief Executive Officer
Sold
1,996 shs ($16K)
Approx. gross sale proceeds
$16K
Approx. exercise cost
$0.00
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Sale | Common Stock, Par Value $0.0001 Per Share | 1,996 | $7.85 | $16K |
| Exercise | Performance Stock Unit | 8,125 | $0.00 | $0.00 |
| Exercise | Common Stock, Par Value $0.0001 Per Share | 8,125 | $7.81 | $63K |
Holdings After Transaction:
Performance Stock Unit — 8,125 contracts (Direct);
Common Stock, Par Value $0.0001 Per Share — 19,109 shares (Direct)
Footnotes (3)
- F1. Represents shares of common stock automatically sold to cover the reporting person's tax liability in connection with the settlement of PSUs on June 30, 2026. This "sell to cover" transaction does not represent a discretionary trade by the reporting person.
- F2. Each performance stock unit ("PSU") represented a contingent right to receive one share of the Issuer's common stock if the volume-weighted average price of the Issuer's common stock for any consecutive sixty (60) trading-day period equaled or exceeded $17.60 (the "Performance Metric") during a performance period ending on June 30, 2028 (the "Performance Period").
- F3. On June 30, 2025, the Reporting Person was granted 16,250 PSUs, 8,125 of which vested on June 30, 2026 following the Issuer's achievement of the Performance Metric during the Performance Period.
Key Figures
Automatic tax sale: 1,996 shares at $7.85
PSUs converted: 8,125 shares
Shares held after: 19,109 shares
+3 more
6 metrics
Automatic tax sale
1,996 shares at $7.85
Open-market sale on July 2, 2026 to cover taxes
PSUs converted
8,125 shares
Performance stock units settled into common stock on June 30, 2026
Shares held after
19,109 shares
Direct STEM common stock holdings following reported transactions
PSUs originally granted
16,250 units
Grant to Arun Narayanan on June 30, 2025
Performance metric price
$17.60 per share
VWAP target for any 60 trading-day period during performance period
Performance period end
June 30, 2028
End date for PSU performance period
Key Terms
performance stock unit, volume-weighted average price, sell to cover, Performance Metric, +1 more
5 terms
performance stock unit financial
"Each performance stock unit ("PSU") represented a contingent right to receive one share..."
A performance stock unit is a type of reward companies give to employees, usually managers, that depends on how well the company performs over time. If the company hits specific goals, the employee earns shares of stock, like earning a prize for reaching certain levels in a game. It motivates employees to work hard because their rewards are tied to the company's success.
volume-weighted average price financial
"if the volume-weighted average price of the Issuer's common stock for any consecutive sixty..."
Volume-weighted average price (VWAP) is the average price of a stock over a specific time period where each trade is weighted by the number of shares traded, so larger trades influence the average more than small ones. Investors and traders use VWAP as a reference point to judge whether trades are happening at relatively good or poor prices—like checking the average price paid for an item at a market where bulk purchases count more than single-item buys.
sell to cover financial
"This "sell to cover" transaction does not represent a discretionary trade by the reporting person."
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.
Performance Metric financial
"equale d or exceeded $17.60 (the "Performance Metric") during a performance period..."
Performance Period financial
"during a performance period ending on June 30, 2028 (the "Performance Period")."
The performance period is the specific time span over which an investment’s results, an employee’s targets, or a fund’s returns are measured and judged. It matters to investors because the length and start/end of that window determine which gains or losses count toward performance fees, bonus payouts, or benchmark comparisons—much like timing a race decides who wins, the chosen period can change whether results look strong or weak.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What insider transactions did STEM (STEM) CEO Arun Narayanan report?
Arun Narayanan reported an automatic sale of 1,996 STEM common shares at $7.85 and the conversion of 8,125 performance stock units into common stock, all tied to performance-based equity compensation and related tax obligations.
What performance condition triggered the STEM (STEM) PSUs to vest?
Each performance stock unit converted to one share if STEM’s volume‑weighted average share price reached at least $17.60 for any consecutive 60 trading days during a performance period ending June 30, 2028, as described in the filing’s footnotes.
How many performance stock units were originally granted to the STEM (STEM) CEO?
On June 30, 2025, Arun Narayanan was granted 16,250 performance stock units, of which 8,125 vested on June 30, 2026 after STEM achieved the specified share-price performance metric during the defined performance period.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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