Company: NSP
Filing Date: 2025-04-15
Form Type: DEF 14A
Source: 0001000753-25-000013
Chunk: 28

Company: INSPERITY, INC.
Filing Date: 2025-04-15
Form: DEF 14A
Chunk 28
---
 regarding the speculative trading of our common stock. We prohibit employees and directors from engaging in hedging transactions involving our common stock. The Board also adopted a formal policy prohibiting employees and directors from engaging in the significant pledging of shares of our common stock. Any requests to pledge shares or to increase existing amounts of pledged shares are reviewed by the Board, which considers the facts and circumstances and other information the Board deems relevant.

As of April 4, 2025, Mr. Sarvadi had 120,000 shares of our common stock pledged, which represented approximately 9.0% of the shares of our common stock Mr. Sarvadi beneficially owned. After a thorough review, the Board approved Mr. Sarvadi’s pledge of shares based on their determination that the number of shares pledged by him were not significant. In making this determination, the Board considered that the pledged shares did not represent a material portion of the total shares beneficially owned by him, were less than 1% of our total shares outstanding and market capitalization, and also represented an amount that could reasonably be expected to be sold in an orderly manner in a short period of time given the Company’s historic average daily trading volume. The Board also considered Mr. Sarvadi’s significant number of founder’s shares that were not earned as compensation from the Company, his compliance with our stock ownership guidelines (disregarding the pledged shares), and the purpose of his pledge being unrelated to an attempt to shift or hedge economic risk in owning Company shares.

In addition, as of April 4, 2025, Mr. Rawson had 25,000 shares of our common stock pledged, which represented approximately 11.2% of the shares of our common stock Mr. Rawson beneficially owned. After a thorough review, the Board approved Mr. Rawson’s pledge of shares based on their determination that the number of shares pledged by him were not significant. In making this determination, the Board considered that Mr. Rawson would continue to hold a material amount of unpledged shares, the pledged shares were less than 1% of our total shares outstanding and market capitalization, and the pledged shares also represented an amount that could reasonably be expected to be sold in an orderly manner in a short period of time given the Company’s historic average daily trading volume. The Board also considered that a significant number of Mr. Rawson’s shares were earned during his employment with the Company and are not related to compensation for service on the Board, his compliance with our