Rackspace CEO Kandiah Vibushanan Sells 498,728 Shares

What Happened

• Kandiah Gajakarnan Vibushanan, CEO of Rackspace Technology, sold 498,728 shares of RXT on September 4, 2026. The weighted-average sale price was $3.21 per share, generating approximately $1,600,917 in gross proceeds. This was a sale (not a buy) executed to satisfy tax obligations tied to vested restricted stock units.

Key Details

• Transaction date: 2026-09-04.
• Shares sold: 498,728; weighted-average price: $3.21; total proceeds ≈ $1,600,917.
• Price range across multiple trades: $3.12 to $3.28 (reported weighted average reflects multiple executions).
• Purpose: Sell-to-cover for tax withholding on vested RSUs (footnote F1).
• Plan: Executed automatically under a Rule 10b5-1 durable sell-to-cover plan adopted March 17, 2026 (footnote F2).
• Additional note: Reporting person will provide full trade-level details on request (footnote F3).
• Shares owned after transaction: Not specified in the provided filing excerpt.
• Filing timeliness: Reported same day (filed 2026-09-04), indicating a timely Form 4.

Context

• Sell-to-cover transactions are routine: they automatically sell the minimum shares needed to cover taxes when RSUs vest and are generally not considered a strong signal of management sentiment compared with discretionary open-market purchases.
• The use of a pre-established 10b5-1 plan means the trades were pre-planned and executed according to the plan’s rules rather than being ad hoc.