LegalZoom (LZ) CEO has 110,321 shares withheld to cover taxes on RSU vesting
Rhea-AI Filing Summary
LEGALZOOM.COM, INC. director and Chief Executive Officer Jeffrey M. Stibel reported an automatic share withholding related to equity compensation. On the vesting of restricted stock units, 110,321 shares of common stock were withheld at $6.00 per share to satisfy his tax withholding obligations, rather than sold on the open market. Following this tax-withholding disposition, he directly holds 2,847,288 shares of LegalZoom common stock, which includes 2,000 shares acquired through the company’s employee stock purchase plan on May 15, 2026. He also reports additional indirect holdings through several trusts and an investment fund, while disclaiming beneficial ownership of those securities beyond his pecuniary interest.
Positive
- None.
Negative
- None.
Insider Trade Summary
Net Seller: 110,321 shares
Net Sell
6 txns
Insider
Stibel Jeffrey M
Role
Chief Executive Officer
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise Price or Tax Liability | Common Stock | 110,321 | $6.00 | $662K |
| holding | Common Stock | -- | -- | -- |
| holding | Common Stock | -- | -- | -- |
| holding | Common Stock | -- | -- | -- |
| holding | Common Stock | -- | -- | -- |
| holding | Common Stock | -- | -- | -- |
Holdings After Transaction:
Common Stock — 2,847,288 shares (Direct);
Common Stock — 13,584 shares (Indirect, By Bryant-Stibel Fund I LLC);
Common Stock — 2,807,719 shares (Indirect, By CES 2020 Trust);
Common Stock — 2,807,719 shares (Indirect, By JMS 2020 Trust);
Common Stock — 537,779 shares (Indirect, By Travron Trust);
Common Stock — 294,326 shares (Indirect, By Escondido Children's Trust)
Footnotes (3)
- F1. This transaction represents the automatic withholding of shares of the Issuer's common stock upon the vesting of restricted stock units in order to satisfy the Reporting Person's tax withholding obligations.
- F2. Includes 2,000 shares acquired pursuant to the Issuer's employee stock purchase plan on May 15, 2026.
- F3. The Reporting Person disclaims beneficial ownership of these securities except to the extent of his pecuniary interest therein, and the inclusion of these securities in this report shall not be deemed an admission of beneficial ownership of all of the reported securities for purposes of Section 16 or for any other purpose.
Key Figures
Tax-withholding shares: 110,321 shares
Withholding price: $6.00 per share
Direct holdings after transaction: 2,847,288 shares
+5 more
8 metrics
Tax-withholding shares
110,321 shares
Shares withheld to satisfy tax obligations on RSU vesting
Withholding price
$6.00 per share
Value applied to shares withheld for tax obligations
Direct holdings after transaction
2,847,288 shares
Common stock held directly by Jeffrey Stibel after withholding
ESPP acquisition
2,000 shares
Shares acquired via employee stock purchase plan on May 15, 2026
Escondido Children’s Trust holdings
294,326 shares
Indirect LegalZoom common stock reported via Escondido Children’s Trust
Travron Trust holdings
537,779 shares
Indirect LegalZoom common stock reported via Travron Trust
JMS 2020 Trust holdings
2,807,719 shares
Indirect LegalZoom common stock reported via JMS 2020 Trust
CES 2020 Trust holdings
2,807,719 shares
Indirect LegalZoom common stock reported via CES 2020 Trust
Key Terms
restricted stock units, tax withholding obligations, employee stock purchase plan, pecuniary interest, +1 more
5 terms
restricted stock units financial
"upon the vesting of restricted stock units in order to satisfy"
Restricted stock units are a type of company reward where employees are promised shares of stock, but they only fully own these shares after meeting certain conditions, like staying with the company for a set time. They matter because they can become valuable assets and are often used to motivate employees to help the company succeed.
tax withholding obligations financial
"withholding of shares ... to satisfy the Reporting Person's tax withholding obligations"
employee stock purchase plan financial
"Includes 2,000 shares acquired pursuant to the Issuer's employee stock purchase plan"
An employee stock purchase plan is a company program that lets workers buy shares through small payroll deductions, often at a discount to the market price and after a set offering period. Think of it like a workplace savings plan that turns into ownership: it encourages employees to share in the company’s success and can create predictable buying or selling of stock that investors watch because it affects supply, demand and employee incentives.
pecuniary interest financial
"disclaims beneficial ownership ... except to the extent of his pecuniary interest therein"
beneficial ownership financial
"shall not be deemed an admission of beneficial ownership of all of the reported securities"
Beneficial ownership means the person or entity that actually enjoys the benefits of owning shares or other assets — such as receiving dividends, voting rights, or price gains — even if the legal title is held in another name. For investors it matters because knowing who truly controls and profits from a company reveals who can influence decisions, exposes potential conflicts of interest or hidden concentration of power, and affects transparency and risk in the stock.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What did LegalZoom (LZ) CEO Jeffrey Stibel report in this Form 4?
Jeffrey Stibel reported an automatic tax-related disposition of shares. 110,321 LegalZoom common shares were withheld at $6.00 each upon restricted stock unit vesting to cover tax obligations, leaving him with 2,847,288 directly held shares afterward.
Was the LegalZoom (LZ) CEO’s Form 4 transaction an open-market sale?
No, it was not an open-market sale. The 110,321 LegalZoom shares were withheld automatically by the company to satisfy tax withholding obligations triggered when restricted stock units vested, which is a routine compensation-related event.
What indirect LegalZoom (LZ) holdings are reported for the CEO?
The filing lists indirect LegalZoom holdings through several entities, including Escondido Children’s Trust, Travron Trust, JMS 2020 Trust, CES 2020 Trust, and Bryant-Stibel Fund I LLC. Stibel disclaims beneficial ownership of these securities except to the extent of his pecuniary interest.
What does the tax-withholding code F mean in this LegalZoom (LZ) Form 4?
Code F indicates shares were withheld to pay taxes on equity awards. In this case, 110,321 LegalZoom shares were automatically applied to cover the CEO’s tax liability when restricted stock units vested, instead of him selling shares in the market.