Form 4: Chegg CEO Nathan Schultz Reports Changes in Beneficial Ownership
SEC Form 4 Filing
Chegg's CEO, Nathan J. Schultz, reports changes in his beneficial ownership of company stock due to vesting of restricted stock units and performance stock units, as well as tax withholding obligations.
Summary
- On March 12, 2025, Chegg CEO Nathan J. Schultz reported changes in his beneficial ownership of Chegg stock.
- These changes involve the vesting of 35,805 performance-based restricted stock units (PSUs) that are now subject to time-based vesting after the Compensation Committee's determination on March 3, 2025.
- Shares subject to the 2024 PSUs allocated to each '2024 performance metric' shall vest 100% on June 12, 2025, subject to continued service.
- Additionally, 8,483 shares were withheld by Chegg to cover federal and state tax obligations related to the vesting of restricted stock units (RSUs) at a price of $0.8577.
- Another 3,111 shares were withheld to cover tax obligations related to the vesting of performance stock units (PSUs) at a price of $0.8577.
- Following these transactions, Schultz directly owns 1,691,945 shares of Chegg common stock and indirectly owns 161,647 shares through the Schultz Family Trust.
Sentiment
Score: 6
Explanation: The document is a standard SEC filing detailing stock transactions. It's neutral in sentiment as it simply reports facts without expressing positive or negative views.
Positives
- The vesting of PSUs indicates that performance metrics were met, which is a positive signal.
Future Outlook
The 2024 PSUs will vest 100% on June 12, 2025, subject to the Reporting Person's continued service through each vesting date.
Industry Context
This filing is a routine disclosure related to executive compensation and stock ownership, common in publicly traded companies.
Stakeholder Impact
- The vesting of stock options and units can be seen as a positive sign for shareholders, aligning management's interests with theirs.
Key Dates
| Date | Description |
|---|---|
| 03/03/2025 | Compensation Committee's determination of performance measurements for PSUs. |
| 03/12/2025 | Date of transaction and reporting of changes in beneficial ownership. |
| 03/14/2025 | Date of signature on the Form 4 filing. |
| 06/12/2025 | Vesting date for the 2024 PSUs. |
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