Form 4: Chegg CEO Nathan Schultz Reports Routine Share Withholding for Tax Obligations

Chegg Inc. CEO and President Nathan J. Schultz reported the automatic withholding of 70,407 shares of common stock to cover tax liabilities related to the vesting of performance and restricted stock units.

Summary

• Nathan J. Schultz, CEO & President of Chegg, Inc., reported changes in his beneficial ownership of company common stock.
• On June 12, 2025, a total of 70,407 shares were disposed of at a price of $1.47 per share.
• These disposals were not sales by Mr. Schultz but were shares automatically withheld by Chegg to satisfy federal and state tax withholding obligations arising from the vesting and settlement of Performance Stock Units (PSUs) and Restricted Stock Units (RSUs).
• Specifically, 15,017 shares were withheld for PSU vesting taxes and 55,390 shares for RSU vesting taxes.
• Following these transactions, Mr. Schultz directly beneficially owns 1,485,090 shares of Chegg common stock.
• Additionally, Mr. Schultz indirectly beneficially owns 306,095 shares through the Schultz Family Trust, where he serves as a Co-Trustee.

Sentiment

Score: 5

Explanation: The document reports a routine insider transaction (tax withholding for equity vesting) which is neither positive nor negative for the company's operational or financial performance. It's a standard administrative event.

Positives

• The reported share disposals were for tax withholding purposes related to equity compensation vesting, indicating the CEO is receiving and vesting equity awards.

Future Outlook

The document does not contain any forward-looking statements or guidance.

Management Comments

• "The Reporting Person did not sell any of the shares reported on this Form 4 item; such shares were cancelled by the Issuer in accordance with the foregoing."

Industry Context

This Form 4 filing is a routine disclosure of an insider transaction, specifically the withholding of shares for tax purposes upon the vesting of equity awards. This is a common practice in executive compensation across various industries and does not provide specific insights into broader industry trends or competitive positioning.

Related Party Transactions

• Nathan J. Schultz indirectly beneficially owns 306,095 shares through the Schultz Family Trust, where he is a Co-Trustee.

Stakeholder Impact

• Shareholders: The transaction represents a routine administrative event related to executive compensation and is unlikely to have a significant direct impact on share price or company strategy. It indicates the vesting of equity awards for the CEO.

Key Dates

Keywords

Chegg, CHGG, Nathan Schultz, SEC Form 4, Insider Transaction, Stock Ownership, Equity Compensation, Restricted Stock Units, Performance Stock Units, Tax Withholding