Earnings Feed
Start Free
Zoom Communications, Inc.·4

Jul 10, 5:24 PM ET

Yuan Eric S. 4

4 · Zoom Communications, Inc. · Filed Jul 10, 2026

Research Summary

AI-generated summary of this filing

Updated

Zoom (ZM) CEO Eric Yuan Exercises RSUs, Shares Withheld for Taxes

What Happened

  • Eric S. Yuan, CEO of Zoom (ZM), had restricted stock units (RSUs) convert to 115,277 shares on July 8–9, 2026 (68,455 shares on 7/8 and 46,822 shares on 7/9). These conversions are reported as "exercise or conversion of derivative" (code M) at $0.00 per share because they reflect RSU vesting/conversion rather than a cash purchase.
  • To satisfy tax withholding, the issuer withheld 58,655 of those shares (34,831 shares on 7/8 at $85.68 = $2,984,320; 23,824 shares on 7/9 at $87.40 = $2,082,218), totaling approximately $5,066,538. Several zero-dollar derivative disposals were also reported reflecting conversion of Class B into Class A common stock (no cash proceeds).

Key Details

  • Transaction dates: July 8, 2026 and July 9, 2026.
  • RSU conversions (acquired): 68,455 shares (7/8) and 46,822 shares (7/9) at $0.00.
  • Shares withheld for taxes (disposed): 34,831 @ $85.68 (7/8) and 23,824 @ $87.40 (7/9); total cash value ≈ $5.07M.
  • Derivative conversions: zero-dollar disposals of Class B → Class A shares matching the converted RSU amounts (per footnote).
  • Notable footnotes: F2 = shares withheld by issuer to satisfy tax withholding; F3–F6 = RSU award descriptions and vesting schedules; F7 = Class B shares are convertible into Class A shares.
  • Filing: Reported period 2026-07-08 and filed 2026-07-10 (appears timely under the typical two-business-day Form 4 window).

Context

  • This was a tax-withholding transaction tied to RSU vesting (issuer withheld shares to cover taxes), not an open-market sale — a routine administrative disposition rather than a deliberate stock sale for investment reasons.
  • The conversions labeled as derivative disposals reflect conversion of Class B common stock into Class A common stock (per footnote), which is a non-cash corporate/ownership-structure action.
  • No evidence in this filing of a 10b5-1 plan or other cash sale; the cash reported relates only to the value of shares withheld for tax obligations.

Insider Transaction Report

Form 4
Period: 2026-07-08
Zoom Communications, Inc.ZM
Yuan Eric S.
DirectorChief Executive Officer
Transactions
  • Exercise/Conversion

    Class A Common Stock

    [F1]
    2026-07-08+68,455→ 68,455 total(indirect: See footnote)
  • Tax Payment

    Class A Common Stock

    [F2][F1]
    2026-07-08$85.68/sh−34,831$2,984,320→ 33,624 total(indirect: See footnote)
  • Exercise/Conversion

    Class A Common Stock

    [F1]
    2026-07-09+46,822→ 80,446 total(indirect: See footnote)
  • Tax Payment

    Class A Common Stock

    [F2][F1]
    2026-07-09$87.40/sh−23,824$2,082,218→ 56,622 total(indirect: See footnote)
  • Exercise/Conversion

    Restricted Stock Units

    [F3][F4]
    2026-07-08−38,282→ 0 total
    → Class A Common Stock (38,282 underlying)
  • Exercise/Conversion

    Restricted Stock Units

    [F3][F5]
    2026-07-08−30,173→ 0 total
    → Class A Common Stock (30,173 underlying)
  • Exercise/Conversion

    Restricted Stock Units

    [F3][F6]
    2026-07-09−46,822→ 514,766 total
    → Class A Common Stock (46,822 underlying)
Holdings

  • Class B Common Stock

    [F7][F1]
    (indirect: See footnote)
    → Class A Common Stock (20,740,485 underlying)
    20,740,485
Footnotes (7)
  • [F1]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.
  • [F2]Shares withheld by Issuer to satisfy the tax withholding obligation in connection with the vesting of Restricted Stock Units.
  • [F3]Each Restricted Stock Unit represents a contingent right to receive one share of Issuer's Class A Common Stock.
  • [F4]The reporting person received an award of restricted stock units on July 8, 2022, which will vest in equal quarterly installments over four years.
  • [F5]The Reporting Person received an award of restricted stock units on July 11, 2023 which will vest in equal quarterly installments over three years.
  • [F6]The reporting person received an award of restricted stock units on April 9, 2026, which will vest in equal quarterly installments over four years.
  • [F7]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.
Signature
/s/ Aparna Bawa, Attorney-in-Fact|2026-07-10

Documents

1 file
  • 4
    wk-form4_1783718654.xmlPrimary

    FORM 4