Schwab (SCHW) MD Neesha Hathi Exercises Options, Sells Shares

What Happened Neesha Hathi, MD and Head, Wealth Advisory, Bank & Trust at Charles Schwab (SCHW), exercised 3,177 stock options at $52.05 per share (total exercise cost $165,363) on 2026-08-28 and then sold the 3,177 shares in the open market at a weighted average price of $108.12 per share for total proceeds of approximately $343,498. The transactions together are consistent with a cashless/near-immediate sell following an option exercise; net proceeds before fees and taxes are roughly $178,135. This sale was executed under a pre-established Rule 10b5-1 trading plan and is generally considered routine.

Key Details

• Transaction date: 2026-08-28 (filed 2026-08-31; filing is timely)
• Exercise: 3,177 shares acquired at $52.05 each; aggregate exercise cost $165,363 (Transaction code M)
• Sale: 3,177 shares sold in open market at weighted avg $108.12; aggregate proceeds ~$343,498 (Transaction code S)
• Reporting of derivative conversion: filing also shows conversion/disposition of the derivative (3,177 shares at $0.00) related to the option exercise
• Footnotes:
  • F1: Shares received on exercise were contributed to a trust
  • F2: Sales were effected pursuant to a Rule 10b5-1 trading plan adopted May 29, 2026
  • F3: Sale executed in multiple trades at prices ranging $107.805–$108.725 (weighted avg reported)
  • F4: Option granted under the company’s 2013 Stock Incentive Plan; vested in four equal annual installments beginning one year after grant
• Shares owned after transaction: not specified in the provided filing

Context

• This sequence (exercise then immediate sale under a 10b5-1 plan) is a common way for insiders to monetize vested options and is generally viewed as routine rather than a directional signal about company prospects.
• The reporting includes both the option exercise (derivative conversion) and the subsequent market sale; the 10b5-1 plan note indicates the sale was preplanned.