Form 4: Crexendo CEO Korn Reports RSU Vesting, Tax Withholding

Crexendo, Inc. CEO Jeffrey G. Korn reported the vesting of 556 Restricted Stock Units and the subsequent withholding of 165 shares for tax purposes on February 25, 2026.

Summary

• Crexendo, Inc. CEO Jeffrey G. Korn reported transactions involving company common stock and Restricted Stock Units (RSUs) on February 25, 2026.
• Mr. Korn acquired a total of 556 shares of common stock through the vesting of RSUs, with an acquisition price of $0 per share.
• Concurrently, 165 shares of common stock were disposed of by the company to cover associated payroll taxes, based on a closing stock price of $5.84 on February 25, 2026.
• Following these transactions, Mr. Korn directly beneficially owns 239,582 shares of common stock.
• Remaining unvested Restricted Stock Units include 6,668 units and 8,612 units, which will vest in equal monthly installments over 36 months.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a neutral to slightly positive event, reflecting routine executive compensation and a minor increase in the CEO's direct ownership, which aligns interests without indicating new strategic developments.

Positives

• The vesting of 556 Restricted Stock Units (RSUs) represents an increase in the CEO's direct ownership of company stock, aligning management's interests with shareholders.
• The RSUs were acquired at a $0 price, indicating they are part of an equity compensation plan.

Negatives

• 165 shares were withheld by the company for tax purposes, reducing the net number of shares received by the CEO from the vesting event.

Risks

• The filing does not explicitly mention specific risks beyond the inherent market risk associated with holding equity securities.

Future Outlook

The filing indicates that additional Restricted Stock Units (6,668 and 8,612 units) will continue to vest in equal monthly installments over 36 months, contingent on continuous employment, with vesting periods starting on March 25, 2025, and October 25, 2025, respectively.

Management Comments

• Each RSU represents the right to receive, upon vesting, one share of CXDO common stock contingent on continued employment.
• The Company withheld 82 shares of common stock for payment of the associated payroll taxes, using the closing stock price on February 25, 2026 of $5.84. This transaction does not represent a sale by the reporting person.
• The RSUs vest in equal monthly installments over 36 months starting on March 25, 2025 until such time as the RSUs are 100% vested, subject to continuous employment. Shares will be delivered upon vesting.
• The Company withheld 83 shares of common stock for payment of the associated payroll taxes, using the closing stock price on February 25, 2026 of $5.84. This transaction does not represent a sale by the reporting person.
• The RSUs vest in equal monthly installments over 36 months starting on October 25, 2025 until such time as the RSUs are 100% vested, subject to continuous employment. Shares will be delivered upon vesting.

Industry Context

StockSavvy.ai notes that routine Form 4 filings detailing RSU vesting and tax withholding are common across publicly traded companies, reflecting standard executive compensation practices. These filings typically do not indicate significant shifts in broader industry trends but rather the ongoing execution of established compensation plans.

Comparison to Industry Standards

• StockSavvy.ai observes that equity compensation, particularly through Restricted Stock Units (RSUs), is a standard practice for executive remuneration in the technology and communications sectors, aligning executive incentives with long-term shareholder value.
• The vesting schedule of 36 months is a common duration for RSU grants, comparable to practices seen at companies like RingCentral (RNG) or 8x8 (EGHT) in the UCaaS (Unified Communications as a Service) space, where multi-year vesting encourages executive retention and sustained performance.
• The withholding of shares for tax purposes is a universal mechanism for settling tax obligations arising from equity compensation, consistent with practices across all U.S. public companies.

Stakeholder Impact

• Shareholders: The increase in CEO's direct ownership aligns management's interests with shareholders, potentially fostering long-term value creation.
• Employees: The RSU vesting demonstrates the company's commitment to its equity compensation plans, which can be a positive for employee retention and motivation, especially for those with similar grants.

Next Steps

• Continued vesting of remaining 6,668 Restricted Stock Units in equal monthly installments over 36 months, starting March 25, 2025.
• Continued vesting of remaining 8,612 Restricted Stock Units in equal monthly installments over 36 months, starting October 25, 2025.

Key Dates

Recommendation

This Form 4 filing details routine RSU vesting and tax withholding for the CEO, which is an expected event and does not provide new material information to warrant a change in investment thesis. It reflects standard executive compensation practices and a minor increase in insider ownership, which is generally a neutral to slightly positive signal, thus maintaining a 'hold' recommendation.

Keywords

Crexendo, CXDO, Jeffrey Korn, CEO, Form 4, Insider Trading, Restricted Stock Units, RSU vesting, Equity Compensation, Stock Ownership