Sonos (NASDAQ: SONO) legal chief gets 42,983 shares in stock vesting
Rhea-AI Filing Summary
Sonos Inc (SONO) reported that Chief Legal Officer Edward P. Lazarus had 42,983 shares of Common Stock issued on August 14, 2026 upon the vesting and settlement of previously granted restricted stock units (RSUs). The company withheld 21,314 shares at $16.59 per share to satisfy federal and state tax withholding obligations related to this RSU vesting, as an exempt transaction under Section 16b-3(e). The RSU awards vest over multi-year schedules with double-trigger acceleration provisions tied to continued employment.
Positive
- None.
Negative
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Insider Trade Summary
Net Buyer: 21,669 shares
Net Buy
5 txns
Insider
Lazarus Edward P
Role
Chief Legal Officer
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Restricted Stock Units F2, F1, F4 | 8,960 | $0.00 | $0.00 |
| Exercise | Restricted Stock Units F2, F1, F5 | 15,117 | $0.00 | $0.00 |
| Exercise | Restricted Stock Units F2, F1, F6 | 18,906 | $0.00 | $0.00 |
| Exercise | Common Stock F1, F2 | 42,983 | -- | -- |
| Exercise Price or Tax Liability | Common Stock F3 | 21,314 | $16.59 | $354K |
Holdings After Transaction:
Restricted Stock Units — 180,168 shares (Direct);
Common Stock — 497,356 shares (Direct)
Footnotes (6)
- F1. Vesting of restricted stock units ("RSUs") previously granted to the Reporting Person.
- F2. Each RSU represents a contingent right to receive 1 share of the Issuer's Common Stock upon vesting and settlement for no consideration.
- F3. Exempt transaction pursuant to Section 16b-3(e) - payment of exercise price or tax liability by delivering or withholding securities incident to the receipt, exercise or vesting of a security issued in accordance with Rule 16b-3. All of the shares reported as disposed of in this Form 4 were withheld by the Issuer in accordance with the agreement governing the RSUs to satisfy federal and state tax withholding obligations of the Reporting Person resulting from the vesting and settlement of RSUs.
- F4. These RSUs will vest based on the following schedule: (i) 1/12 of the shares subject to the RSUs vested on November 15, 2024 and (ii) the remaining RSUs vest quarterly over the next eleven quarters in equal quarterly installments, until such time as the RSUs are 100% vested, in each case subject to the continuing employment of the Reporting Person on each vesting date. The RSUs are subject to double-trigger acceleration.
- F5. These RSUs will vest over a two year period as follows: 1) 15% of the shares subject to the RSUs will vest quarterly in year 1 following the vesting commencement date of November 15, 2024 and 2) 10% of the shares subject to the RSUs will vest quarterly in year 2, in each case subject to the continuing employment of the Reporting Person on each vesting date. The RSUs are subject to double-trigger acceleration.
- F6. 1/12 of the shares subject to the RSUs vest in equal installments on each quarterly anniversary date following the applicable vesting commencement date of until such time as the RSUs are 100% vested, subject to the continuing employment of the Reporting Person on each vesting date. The RSUs are subject to double-trigger acceleration.
Key Figures
RSUs converted to Common Stock: 42,983 shares
RSU tranche 1: 8,960 shares
RSU tranche 2: 15,117 shares
+3 more
6 metrics
RSUs converted to Common Stock
42,983 shares
Total RSUs vested and settled into common stock on August 14, 2026
RSU tranche 1
8,960 shares
RSUs vested and settled into common stock with schedule described in footnote F4
RSU tranche 2
15,117 shares
RSUs vested and settled into common stock with schedule described in footnote F5
RSU tranche 3
18,906 shares
RSUs vested and settled into common stock with schedule described in footnote F6
Shares withheld for taxes
21,314 shares
Shares withheld to satisfy RSU-related tax obligations under Section 16b-3(e)
Withholding price
$16.59 per share
Value used for the 21,314 shares withheld to cover tax liabilities
Key Terms
Restricted Stock Units, double-trigger acceleration, Section 16b-3(e), Rule 16b-3
4 terms
Restricted Stock Units financial
"Vesting of restricted stock units ("RSUs") previously granted"
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.
double-trigger acceleration financial
"The RSUs are subject to double-trigger acceleration"
A contractual feature in employee equity plans that speeds up the vesting of stock awards only when two specific events happen, most commonly a change of company control (like a sale or merger) and a qualifying termination of employment (such as being fired without cause). It matters to investors because it can change how much equity converts or becomes payable in a deal — like a safety net that frees up shares only if both conditions occur — affecting takeover costs, share dilution, and employee incentives around transactions.
Section 16b-3(e) regulatory
"Exempt transaction pursuant to Section 16b-3(e) - payment of exercise price"
Rule 16b-3 regulatory
"security issued in accordance with Rule 16b-3"
Rule 16b-3 is a Securities and Exchange Commission regulation that exempts certain routine, pre-approved transactions by company insiders from automatic liability for short-term trading profits. It acts like a safe harbor: if an insider follows a formal plan or the board approves specific transactions in advance, profits from buying and selling company stock within six months are not automatically reclaimed. Investors care because the rule clarifies when insider trades are permissible and reduces uncertainty about potential clawbacks.
FAQ
What RSU vesting did Sonos (SONO) disclose for Edward P. Lazarus on August 14, 2026?
On August 14, 2026, 42,983 RSUs previously granted to Sonos Chief Legal Officer Edward P. Lazarus vested and were settled into an equal number of shares of common stock, each RSU representing one share delivered for no cash consideration.
What type of transactions were reported for Sonos (SONO) insider Edward P. Lazarus?
The report shows RSU vesting transactions (code M) converting restricted stock units into common stock, an acquisition of the resulting shares, and a withholding transaction (code F) where shares were disposed of to satisfy tax obligations tied to the vesting.
Do the Sonos (SONO) RSUs for Edward P. Lazarus have special vesting protections?
Yes. The RSU awards carry double-trigger acceleration, meaning vesting can accelerate upon specified events in addition to continued employment-based schedules, which include quarterly vesting over one- and two-year periods depending on the grant.
AI-generated analysis. How Rhea-AI works. Not financial advice.
