Zoom (ZM) CEO Eric Yuan details RSU vesting and taxes in Form 4 filing
Rhea-AI Filing Summary
Zoom Communications CEO Eric S. Yuan, who also serves as a director, reported equity award activity on January 8, 2026. Restricted stock units vested into 68,453 shares of Class A common stock, shown as indirectly held through the 2018 Yuan and Zhang Revocable Trust. To cover tax withholding on this vesting, 33,199 Class A shares were withheld by the company at a price of $86.63 per share, leaving 35,254 Class A shares indirectly held after the transaction.
Following these transactions, Yuan also reports 76,563 and 60,346 restricted stock units held directly from prior awards that vest over multi‑year schedules. In addition, he indirectly holds 20,885,700 shares of Class B common stock through the trust, which are convertible into Class A shares under conditions described in the company’s charter.
Positive
- None.
Negative
- None.
Insider Trade Summary
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Restricted Stock Units | 38,281 | $0.00 | -- |
| Exercise | Restricted Stock Units | 30,172 | $0.00 | -- |
| Exercise | Class A Common Stock | 68,453 | $0.00 | -- |
| Tax Withholding | Class A Common Stock | 33,199 | $86.63 | $2.88M |
| holding | Class B Common Stock | -- | -- | -- |
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. 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.
FAQ
What insider activity did Zoom (ZM) report for Eric S. Yuan?
Zoom reported that Eric S. Yuan, its Chief Executive Officer and director, had restricted stock units vest on January 8, 2026, converting into 68,453 shares of Class A common stock that are indirectly held through a revocable trust.
What restricted stock unit awards for Zoom does Eric Yuan still hold?
After the reported transactions, Yuan holds 76,563 restricted stock units from a July 8, 2022 award that vests in equal quarterly installments over four years and 60,346 restricted stock units from a July 11, 2023 award that vests in equal quarterly installments over three years.
What do the transaction codes M and F mean in this Zoom Form 4?
Code M indicates the settlement of derivative securities, here restricted stock units converting into Class A shares. Code F indicates shares withheld by the issuer to pay tax obligations arising from the vesting of those restricted stock units.