Form 4: Crexendo CEO Jeffrey Korn Acquires Shares Through RSU Vesting, Discloses Tax Withholding

Crexendo, Inc. CEO Jeffrey G. Korn acquired 5,000 shares of common stock through the vesting of Restricted Stock Units, with 1,218 shares withheld for tax obligations.

Summary

• Jeffrey G. Korn, Chief Executive Officer of Crexendo, Inc. (CXDO), acquired 5,000 shares of common stock on June 5, 2025, through the vesting of Restricted Stock Units (RSUs).
• Each RSU represents the right to receive one share of CXDO common stock, contingent on continued employment.
• Following the acquisition, the company withheld 1,218 shares of common stock to cover associated payroll taxes. This withholding was based on the closing stock price of $5.51 on June 5, 2025.
• This transaction is not a sale by the reporting person but a standard tax withholding procedure.
• After these transactions, Mr. Korn directly beneficially owns 251,577 shares of common stock and 35,000 Restricted Stock Units.
• The RSUs vest in equal quarterly installments over 12 quarters, commencing on June 5, 2024, subject to continuous employment.

Sentiment

Score: 6

Explanation: The document reports a routine insider transaction involving the vesting of executive compensation and subsequent tax withholding. While not indicative of new strategic initiatives or financial performance, the increase in direct share ownership by the CEO is generally viewed as a positive alignment of interests. The transaction itself is neutral in terms of company performance.

Positives

• The vesting of Restricted Stock Units indicates the fulfillment of employment-based incentives for the CEO.
• The acquisition of 5,000 shares by the CEO increases his direct ownership in the company, aligning his interests with shareholders.

Negatives

• 1,218 shares were withheld by the company for tax purposes, which, while a standard procedure, reduces the net shares received by the CEO.

Future Outlook

The document indicates that the remaining 35,000 Restricted Stock Units held by Jeffrey G. Korn will continue to vest in equal quarterly installments over 12 quarters, starting from June 5, 2024, contingent on his continuous employment.

Industry Context

This Form 4 filing is a routine disclosure of an insider transaction, specifically the vesting of executive compensation in the form of Restricted Stock Units and the subsequent tax withholding. It does not provide broader industry trends or competitive analysis but reflects standard executive compensation practices within publicly traded companies.

Stakeholder Impact

• Shareholders: The transaction increases the CEO's direct ownership, potentially aligning management interests more closely with shareholders. The tax withholding is a standard operational aspect.
• Employees: The RSU vesting mechanism is a common form of executive compensation, which can set a precedent or expectation for performance-based incentives within the company.

Next Steps

• The remaining 35,000 Restricted Stock Units held by Jeffrey G. Korn are scheduled to continue vesting in equal quarterly installments over 12 quarters, starting June 5, 2024, subject to continuous employment.

Key Dates

Keywords

Crexendo Inc., CXDO, Jeffrey G. Korn, CEO, Form 4, SEC filing, Insider transaction, Restricted Stock Units, RSU vesting, Common stock, Share acquisition, Tax withholding, Beneficial ownership