Yu Alan 4

What Happened Alan Yu, CEO of Karat Packaging Inc. (KRT), was granted 32,000 restricted stock units (RSUs) on March 11, 2026 and on May 12, 2026 had 8,000 RSUs convert into common shares upon vesting. The 32,000 RSU award is reported at $0 (standard for RSU grants). The 8,000 shares that converted on May 12 show no cash proceeds in the filing — the converted shares were immediately transferred/withheld (reported as a disposition at $0), consistent with tax withholding or net settlement.

Key Details

• Grant: 32,000 RSUs awarded on 2026-03-11 (reported price $0.00). These RSUs convert one-for-one into common stock and vest in two equal annual installments beginning March 10, 2027 (per footnote).
• Vest/Conversion: 8,000 RSUs converted to common stock on 2026-05-12. A matching 8,000-share disposition on 2026-05-12 is reported at $0.00 (no sale proceeds disclosed).
• Source grants: The 8,000-share conversion corresponds to the final tranche of a 24,000-RSU grant made on 2024-03-12 that vested in three equal installments beginning May 12, 2024 (8,000 each). Footnotes confirm RSUs convert 1:1 into common stock.
• Shares owned after the transactions: Not specified in the provided extract of the filing.
• Filing timeliness: Form 4 filed 2026-05-14. The May 12, 2026 conversion/disposition was reported within the typical two-business-day window and is not indicated as late.

Context

• RSUs are a form of equity award that convert to shares when they vest; they are reported at $0 in grant filings. Conversions followed by immediate disposition at $0 commonly reflect withholding/retention of shares to satisfy tax obligations rather than open-market sales, and do not necessarily indicate a change in confidence.
• This filing includes both a new RSU grant (future vesting schedule) and the conversion/withholding of an earlier RSU tranche — it is routine compensation-related insider activity rather than an open-market purchase or sale.