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Form 4 "Tax Withholding" Question


Cevian
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Can anyone explain what a "Tax Withholding" transaction means on a Form 4?

 

As a specific example, I initially saw "Insider Sales" at CHK through filing of Form 4s on 31 Jan 2020 but, on closer inspection, the Form 4 is coded as F meaning "Tax Withholding" sale?

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When shares vest as part of a compensation plan it is common for the company to keep some of the shares to help satisfy the employee's tax liability because it looks a lot better than that insider employee being forced to sell stock in the open market to satisfy the income tax on their share based compensation.  Did that make sense?

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