Candor Launches Impact Shield: A Shareholder Value Protection Solution for RSU Tax Settlement

San Francisco, June 24, 2025 — Candor, the leading platform helping CFOs effectively manage stock-based compensation expense (SBC), today announced the launch ofImpact Shield, the first RSU tax settlement optimization solution. Designed by a team of former institutional traders and engineers, Impact Shield aims to protect shareholder value and minimize stock price impact during scheduled RSU vesting events.

Candor's analysis over the past 24 months shows that public companies can lose2-6% of their market capitalization each quarterdue to poor execution of open market sales used to pay RSU tax liabilities. Additional internal research indicates that stock price recovery periods can last up to 2.5 months, during which institutional investors receive zero returns. Candor's solution addresses this blind spot by applying its technology-leading automated capital markets platform to clients' tax liability needs.

"Most CFOs don't realize they are eroding shareholder value through routine RSU tax settlements,"said Niya Dragova, CEO of Candor."Brokers use the same trading execution methods regardless of market conditions or individual stock characteristics, creating exploitable patterns for traders on both sides. How your stock enters the market matters more than you realize. We built a platform that brings institutional-grade execution to equity compensation."

The Cost of Poor Execution

The problem begins with the timing of RSU vesting events, which often coincide with earnings reports and open trading windows—inevitably increasing volatility. Brokers using standard trading practices do not account for your stock's seasonal trends, leading to staggering consequences. In the current environment, companies experience:

• Significant and unpredictablemarket capitalization losses, with some companies losing up to $1 billion per quarter on each sale to pay taxes
• Trading volume spikes of 20-40% on sell-to-cover tax days
• Recovery periods lasting up to 2.5 months, accompanied by persistent negative investor sentiment
• Deteriorating employee moraleas their stock depreciates after vesting

"We analyzed companies that experienced months-long recovery periods with zero returns for institutional investors,"noted Chen Chen, Head of Quantitative Research at Candor."This is value destruction that CFOs can control."

A Solution for Public Companies

Candor's platform offers execution strategies to protect shareholder value:

• True VWAP execution: Reduces price impact by up to 12x using Candor's proprietary trading technology
• Combination settlement strategies: Including anti-dilutive methods that pair withholding with buyback timing
• Multi-venue execution: Leverages multiple public trading venues and dark pools to access additional liquidity and eliminate market impact
• Timing optimization: Extends execution windows beyond traditional broker timeframes to align with your stock's characteristics

Incentive-aligned approach

Unlike brokers who profit from trading volume, Candor operates in the best interest of the company—not the broker—ensuring recommendations prioritize shareholder value over transaction fees.

"The equity compensation industry treats tax settlements as administrative tasks rather than capital markets activities,"said Dragova."CFOs need execution strategies that meet tax cash needs, not volume control in the name of trading."

Results

Early adopters have achieved:

• Up to 12x reduction in market impactthrough the use of Candor's proprietary trading technology
• Elimination of recovery periodsthrough execution timing optimization
• Improved employee equity sentimentthrough preservation of post-vesting value
• Enhanced institutional investor relationsthrough value consciousness

The solution offers seamless integration, complementing existing processes without operational disruption.

About Candor

Candor helps public companies protect shareholder value during RSU tax settlement events. As a trusted partner to CFOs, Candor's incentives are aligned with protecting shareholder value, not creating volume for fees. Founded by former institutional traders and equity compensation experts, the platform brings Wall Street-level execution strategies to routine equity compensation transactions that can erode your market capitalization.

To request a demo, contact [email protected]. For more information about Candor, visitcandor.co。