Zoom Communications (NASDAQ: ZM) CEO Eric Yuan converts RSUs and retains large Class B stake
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
Zoom Communications, Inc. Chief Executive Officer Eric S. Yuan reported routine equity compensation activity involving restricted stock units and related tax withholding. On July 8–9, 2026, he exercised or converted a total of 115,277 restricted stock units into an equal number of shares of Class A Common Stock, and 58,655 Class A shares were withheld by the issuer to cover tax obligations. Following these transactions, he indirectly held 80,446 shares of Class A Common Stock and had a large indirect position of 20,740,485 shares of Class B Common Stock held through a revocable trust, each Class B share being convertible into one Class A share.
Positive
- None.
Negative
- None.
Insights
Routine RSU vesting and tax withholding; CEO maintains a very large stake.
CEO Eric S. Yuan reported vesting and settlement of equity awards rather than open-market trading. He exercised or converted 115,277 restricted stock units into Class A Common Stock, while 58,655 Class A shares were withheld by the issuer to satisfy tax obligations tied to vesting.
These Form 4 entries reflect ongoing compensation plans granted on July 8, 2022, July 11, 2023, and April 9, 2026, each vesting in equal quarterly installments. After these transactions, Yuan continued to hold 20,740,485 Class B shares indirectly through a revocable trust, each convertible into one Class A share, indicating that his overall economic interest and voting influence remain substantial.
Insider Trade Summary
115,277 shares exercised/converted
Mixed
8 txns
Insider
Yuan Eric S.
Role
Chief Executive Officer
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Restricted Stock Units | 46,822 | $0.00 | -- |
| Exercise | Class A Common Stock | 46,822 | $0.00 | -- |
| Tax Withholding | Class A Common Stock | 23,824 | $87.40 | $2.08M |
| Exercise | Restricted Stock Units | 38,282 | $0.00 | -- |
| Exercise | Restricted Stock Units | 30,173 | $0.00 | -- |
| Exercise | Class A Common Stock | 68,455 | $0.00 | -- |
| Tax Withholding | Class A Common Stock | 34,831 | $85.68 | $2.98M |
| holding | Class B Common Stock | -- | -- | -- |
Holdings After Transaction:
Restricted Stock Units — 514,766 shares (Direct, null);
Class A Common Stock — 80,446 shares (Indirect, See footnote);
Class B Common Stock — 20,740,485 shares (Indirect, See footnote)
Footnotes (1)
- The shares are held of record by Zheng Yuan and Hongyu Zhang, cotrustees of the the 2018 Yuan and Zhang Revocable Trust, for which the Reporting Person and the Reporting Person's spouse serve as cotrustees. Shares withheld by Issuer to satisfy the tax withholding obligation in connection with the vesting of Restricted Stock Units. Each Restricted Stock Unit represents a contingent right to receive one share of Issuer's Class A Common Stock. The reporting person received an award of restricted stock units on July 8, 2022, which will vest in equal quarterly installments over four years. The Reporting Person received an award of restricted stock units on July 11, 2023 which will vest in equal quarterly installments over three years. The reporting person received an award of restricted stock units on April 9, 2026, which will vest in equal quarterly installments over four years. Each share of Class B Common Stock is convertible at the option of the Reporting Person into one share of Class A Common Stock and has no expiration date. Each share of Class B Common Stock held by the Reporting Person will automatically convert into one share of Class A Common Stock upon (a) other than Eric S. Yuan, the death of the Reporting Person, or (b) any transfer by the Reporting Person except certain "Permitted Transfers" described in the Issuer's certificate of incorporation. All outstanding shares of Class B Common Stock will convert into shares of Class A Common Stock upon the earliest of (i) six months following the death or incapacity of Mr. Yuan, (ii) six months following the date that Mr. Yuan ceases providing services to the Issuer, (iii) the date specified by the holders of a majority of the shares of Class B Common Stock, and (iv) the 15-year anniversary of the closing of the Issuer's initial public offering.
Key Figures
RSUs Exercised or Converted: 115,277 shares
Shares Withheld for Taxes: 58,655 shares
Indirect Class A Holdings After Transactions: 80,446 shares
+3 more
6 metrics
RSUs Exercised or Converted
115,277 shares
Total restricted stock units exercised or converted into Class A Common Stock in the reported period
Shares Withheld for Taxes
58,655 shares
Class A shares withheld by issuer to satisfy tax obligations on RSU vesting
Indirect Class A Holdings After Transactions
80,446 shares
Class A Common Stock indirectly held by Eric Yuan following the July 9, 2026 transactions
Indirect Class B Holdings
20,740,485 shares
Class B Common Stock indirectly held through a revocable trust, each convertible into one Class A share
Tax Withholding Share Prices
$87.40 and $85.68 per share
Per-share values used for Class A shares withheld for tax obligations on July 9 and July 8, 2026
RSUs Remaining After One Transaction Set
514,766 units
Restricted Stock Units remaining directly after one of the derivative exercises/conversions
Key Terms
Restricted Stock Units, tax withholding obligation, Class B Common Stock, Permitted Transfers
4 terms
Restricted Stock Units financial
"The reporting person received an award of restricted stock units on July 8, 2022"
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 obligation financial
"Shares withheld by Issuer to satisfy the tax withholding obligation in connection"
Class B Common Stock financial
"Each share of Class B Common Stock is convertible at the option of the Reporting Person"
A class B common stock is one of multiple types of a company’s ordinary shares that carries specific rights—often different voting power or dividend priority—compared with other classes. For investors it matters because those differences affect how much influence you have over company decisions, the income you might receive, and how freely the shares trade; think of it like owning a car with different keys: some keys let you start the engine and open the trunk, others only unlock the door.
Permitted Transfers regulatory
"except certain "Permitted Transfers" described in the Issuer's certificate of incorporation"
FAQ
What insider transactions did Zoom (ZM) CEO Eric Yuan report on July 8–9, 2026?
Eric Yuan reported vesting and exercise of restricted stock units into Class A shares and issuer share withholding for taxes, rather than any open-market purchases or sales.
What are Eric Yuan’s indirect Class A holdings in Zoom (ZM) after these transactions?
Following the July 2026 activity, Eric Yuan indirectly held 80,446 shares of Class A Common Stock, in addition to his much larger indirect holdings of Class B shares.
Do Eric Yuan’s reported Zoom (ZM) transactions involve a 10b5-1 trading plan?
The disclosure describes restricted stock unit awards and tax withholding but does not reference any Rule 10b5-1 trading plan in the provided information.