Doordash, the nation’s leading food delivery service, says its three co-founders will sell a combined 6.6 million shares of stock by this spring. At current share prices, the trio could reap over $369 million after the sales.
CEO Tony Xu, Chief Technical Officer Andy Fang, and Chief Product Officer Stanley Tang — all Stanford grads and the three co-founders of DoorDash — are selling shares via a stock trading plan in accordance with Rule 10b5-1 of the Securities and Exchange Act of 1934, as amended, and the policies of DoorDash regarding stock transactions.
Mr. Xu, Mr. Fang, and Mr. Tang each have unexercised options that expire on June 25, 2024. The trading plans were adopted in order to allow Mr. Xu, Mr. Fang, and Mr. Tang to sell DoorDash Class A common stock acquired through planned option exercises in advance of such options expiring. Under these trading plans, Mr. Xu, Mr. Fang, and Mr. Tang intend to spread their dispositions of DoorDash stock over a period beginning in February 2023 and ending between February 2024 and June 2024. All sales under Mr. Xu’s, Mr. Fang’s, and Mr. Tang’s trading plans are subject to volume limitations, pursuant to Rule 144, which limit the number of shares that can be sold in any three-month period.
Under the terms of the new trading plans, Mr. Xu intends to sell up to approximately 2.2 million shares of Class A common stock, Mr. Fang intends to sell up to approximately 2.0 million shares of Class A common stock, and Mr. Tang intends to sell up to approximately 2.4 million shares of Class A common stock.
According to the company’s most recent proxy statement, CEO Tony Xu earned $300,000 in base salary for 2021.
Doordash went public in December 2020 and priced at $102 per share. Shares reached as high as $245 in November 2021.
The stock was trading at above $56 per share Tuesday, up 16% year-to-date but down 49% over the past year.