Form 4: Crexendo CEO Reports RSU Vesting and Tax Withholding

Crexendo CEO Jeffrey G. Korn reported the vesting of Restricted Stock Units and subsequent tax-related share withholdings on January 25, 2026.

Summary

• Crexendo, Inc. CEO Jeffrey G. Korn reported transactions involving common stock and Restricted Stock Units (RSUs) on January 25, 2026.
• Korn acquired 277 shares of common stock through the vesting of RSUs, with an exercise price of $0 per share.
• The company withheld 82 shares of common stock for payment of associated payroll taxes, based on a closing stock price of $7.45 on January 25, 2026. This was not a sale by the reporting person.
• Korn acquired an additional 277 shares of common stock from another RSU vesting event, also with an exercise price of $0 per share.
• The company withheld 83 shares of common stock for payment of associated payroll taxes, again using the closing stock price of $7.45 on January 25, 2026. This was also not a sale by the reporting person.
• Following these transactions, Jeffrey G. Korn beneficially owns 239,191 shares of Crexendo common stock.
• The RSUs vest in equal monthly installments over 36 months, contingent on continued employment, with vesting periods starting March 25, 2025, and October 25, 2025.

Sentiment

Score: 5

Explanation: The filing reports routine insider transactions related to executive compensation (RSU vesting and tax withholding). These are standard events and do not indicate any significant positive or negative developments for the company's operational or financial performance.

Positives

• The vesting of Restricted Stock Units indicates continued executive employment and alignment of management incentives with shareholder interests.
• The transactions are part of a pre-arranged plan (Rule 10b5-1(c)), suggesting a structured approach to executive compensation and stock management.

Negatives

• No direct negative events were reported; the disposition of shares was solely for tax withholding purposes, which is a standard practice for RSU vesting.

Risks

• The vesting of Restricted Stock Units is contingent on continued employment, meaning the executive would forfeit unvested shares upon termination.
• The value of the vested shares is subject to market fluctuations of Crexendo's common stock.

Future Outlook

Restricted Stock Units will continue to vest in equal monthly installments over 36 months, contingent on the CEO's continuous employment, with shares delivered upon vesting.

Management Comments

• Each RSU represents the right to receive, upon vesting, one share of CXDO common stock contingent on continued employment.
• The Company withheld shares of common stock for payment of associated payroll taxes; this transaction does not represent a sale by the reporting person.

Industry Context

This Form 4 filing details a routine insider transaction related to executive compensation, specifically the vesting of Restricted Stock Units. Such filings are common across publicly traded companies as part of their executive incentive programs and do not typically reflect broader industry trends.

Comparison to Industry Standards

• The use of Restricted Stock Units (RSUs) as a component of executive compensation is a common practice across various industries, aligning executive incentives with long-term company performance and shareholder value.
• The withholding of shares for tax purposes upon RSU vesting is a standard and widely accepted method for managing tax obligations in equity compensation plans, consistent with practices at comparable companies.

Related Party Transactions

• The transactions involve the Chief Executive Officer, Jeffrey G. Korn, and Crexendo, Inc., which are considered related parties in the context of executive compensation.

Stakeholder Impact

• Shareholders: Provides transparency into executive compensation and stock ownership, confirming the CEO's continued equity stake in the company.
• Employees: Demonstrates the company's ongoing executive compensation structure, which may influence broader employee incentive programs.

Next Steps

• Continued vesting of remaining Restricted Stock Units in monthly installments over 36 months, subject to continuous employment.

Key Dates

Recommendation

This Form 4 filing details routine vesting of Restricted Stock Units and subsequent tax-related share withholdings by the CEO. These are standard compensation events and do not provide new material information regarding the company's operational performance, financial health, or strategic direction that would warrant a change in investment recommendation. Therefore, a 'hold' recommendation is appropriate as the filing does not present a catalyst for significant price movement.

Keywords

Crexendo, CXDO, Form 4, Insider Transaction, Restricted Stock Units, RSU, Executive Compensation, Jeffrey G. Korn, Stock Vesting, Tax Withholding