Zoom (ZM) CEO gains Class A shares as RSUs vest, pays taxes in stock
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
Zoom Communications, Inc. CEO Eric S. Yuan reported routine equity compensation activity. On April 8 and 9, he exercised restricted stock units and performance-vesting RSUs covering a total of 74,914 shares of Class A Common Stock, reflecting previously granted awards that vested over time and upon performance certification.
A portion of the newly delivered shares was withheld by the company to cover tax obligations: 34,831 shares at $84.02 per share on April 8 and 3,287 shares at $83.23 per share on April 9. After these transactions, 36,796 shares of Class A Common Stock were held indirectly through a revocable trust associated with Yuan, and 20,837,285 shares of Class B Common Stock were indirectly held, each convertible into one Class A share.
Positive
- None.
Negative
- None.
Insider Trade Summary
74,914 shares exercised/converted
Mixed
8 txns
Insider
Yuan Eric S.
Role
Chief Executive Officer
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Performance-vesting RSU | 6,460 | $0.00 | -- |
| Exercise | Class A Common Stock | 6,460 | $0.00 | -- |
| Tax Withholding | Class A Common Stock | 3,287 | $83.23 | $274K |
| Exercise | Restricted Stock Units | 38,281 | $0.00 | -- |
| Exercise | Restricted Stock Units | 30,173 | $0.00 | -- |
| Exercise | Class A Common Stock | 68,454 | $0.00 | -- |
| Tax Withholding | Class A Common Stock | 34,831 | $84.02 | $2.93M |
| holding | Class B Common Stock | -- | -- | -- |
Holdings After Transaction:
Performance-vesting RSU — 0 shares (Direct);
Class A Common Stock — 40,083 shares (Indirect, See footnote);
Restricted Stock Units — 38,282 shares (Direct);
Class B Common Stock — 20,837,285 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. Shares withheld by Issuer to satisfy the tax withholding obligation in connection with the vesting of Performance-vesting 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. Each performance-vesting restricted stock unit (the performance-vesting RSU) represents a contingent right to receive one share of Issuers Class A Common Stock. Represents performance-vesting RSUs previously granted to the Reporting Person, which were subject to vesting upon certification by the Compensation Committee of the Companys achievement of certain performance metrics and determination of the number of performance-vesting RSUs that were eligible to vest, which determination occurred on February 27, 2026. The performance-vesting RSU is also subject to a service-based vesting requirement and vested on April 9, 2026. 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
RSU and performance RSU shares exercised: 74,914 shares
Tax withholding April 8, 2026: 34,831 shares at $84.02
Tax withholding April 9, 2026: 3,287 shares at $83.23
+4 more
7 metrics
RSU and performance RSU shares exercised
74,914 shares
Total Class A shares delivered from RSU and performance-vesting RSU exercises on April 8–9, 2026
Tax withholding April 8, 2026
34,831 shares at $84.02
Shares withheld to satisfy tax obligations on RSU vesting
Tax withholding April 9, 2026
3,287 shares at $83.23
Shares withheld to satisfy tax obligations on performance-vesting RSU vesting
Indirect Class A holdings
36,796 shares
Class A Common Stock held indirectly through a revocable trust after April 9, 2026 transactions
Indirect Class B holdings
20,837,285 shares
Class B Common Stock indirectly held, each convertible into one Class A share
Remaining RSUs from 2022 grant
38,282 units
Restricted Stock Units from July 8, 2022 grant remaining after vesting transactions
Remaining RSUs from 2023 grant
30,173 units
Restricted Stock Units from July 11, 2023 grant remaining after vesting transactions
Key Terms
Restricted Stock Unit, performance-vesting restricted stock units, tax withholding obligation, Class B Common Stock, +2 more
6 terms
Restricted Stock Unit financial
"The reporting person received an award of restricted stock units on July 8, 2022, which will vest in equal quarterly installments over four years."
A restricted stock unit is a promise from a company to give an employee shares of stock after certain conditions are met, like staying with the company for a set amount of time. It’s like earning a bonus that turns into company stock once you’ve proven your commitment, making it a way to motivate and reward employees.
performance-vesting restricted stock units financial
"Represents performance-vesting RSUs previously granted to the Reporting Person, which were subject to vesting upon certification of certain performance metrics."
Performance-vesting restricted stock units are a form of employee pay where future company shares are granted only if the business meets specific targets, such as revenue, profit, or stock-price goals. Think of them as a bonus you earn only when certain milestones are hit; for investors they matter because they can increase the number of shares outstanding if goals are met and they reveal how management is being motivated to hit particular financial or operational objectives.
tax withholding obligation financial
"Shares withheld by Issuer to satisfy the tax withholding obligation in connection with the vesting of Restricted Stock Units."
Class B Common Stock financial
"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."
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 financial
"Each share of Class B Common Stock held by the Reporting Person will automatically convert into one share of Class A Common Stock upon any transfer by the Reporting Person except certain "Permitted Transfers"."
Revocable Trust financial
"The shares are held of record by Zheng Yuan and Hongyu Zhang, cotrustees of the the 2018 Yuan and Zhang Revocable Trust."
A revocable trust is a legal arrangement where the person who creates it keeps control and can change or cancel the trust at any time, while naming who will manage and receive the assets later. Think of it like a flexible folder for your investments and property that can be relabeled or reworked as circumstances change; it matters to investors because it determines how ownership is recorded, how easily assets transfer on incapacity or death, and whether holdings bypass public probate proceedings.
FAQ
What insider transactions did Zoom (ZM) CEO Eric S. Yuan report?
Eric S. Yuan reported exercises of restricted stock units and performance-vesting RSUs converting into 74,914 shares of Class A Common Stock. These awards were previously granted and vested based on time and certified performance conditions, reflecting routine equity compensation rather than open-market purchases or sales.
What Zoom (ZM) Class A Common Stock does Eric Yuan hold after these transactions?
After the reported transactions, 36,796 shares of Zoom Class A Common Stock were indirectly held through a revocable trust associated with Eric Yuan. This figure reflects the trust’s Class A position following RSU conversions and tax-withholding share surrenders disclosed for April 8 and April 9.
What are Eric Yuan’s Zoom (ZM) Class B holdings and how can they convert?
The filing shows 20,837,285 shares of Class B Common Stock indirectly held, each convertible into one share of Class A Common Stock. Conversion can occur at Yuan’s option or automatically upon specified events described in the company’s certificate of incorporation, including certain transfers and future time-based triggers.
What are performance-vesting RSUs in the Zoom (ZM) CEO’s filing?
Each performance-vesting RSU represents a contingent right to receive one share of Class A Common Stock. Vesting depended first on compensation committee certification of performance metrics, completed on February 27, 2026, and then on a service-based condition, which was satisfied, leading to vesting on April 9, 2026.
How do Eric Yuan’s time-based RSUs in Zoom (ZM) vest?
One RSU grant from July 8, 2022 vests in equal quarterly installments over four years, and another from July 11, 2023 vests in equal quarterly installments over three years. Each vested RSU delivers one share of Class A Common Stock when the corresponding service-based vesting condition is met.