Form 4: CS Disco Officer Sells Shares for Tax, Receives New RSU Grants

CS Disco's EVP, Chief Customer Officer, Melanie Antoon, reported a mandatory stock sale to cover taxes and the acquisition of new restricted stock units.

Summary

• Melanie Antoon, EVP, Chief Customer Officer of CS Disco, Inc., reported transactions involving the company's common stock.
• On February 17, 2026, Antoon sold 9,289 shares of common stock at a weighted average price of $3.07 per share.
• This sale was mandatory to cover taxes and fees associated with the release and settlement of restricted stock units.
• On February 18, 2026, Antoon acquired 42,910 restricted stock units (RSUs) at a price of $0. These RSUs will vest in 16 equal quarterly installments, beginning May 16, 2026.
• Also on February 18, 2026, Antoon acquired 43,162 performance-based RSUs at a price of $0, which were granted in February 2025 and certified by the Compensation Committee.
• One-fourth of these performance-based RSUs will vest after the 2025 earnings release, with the remainder vesting in 12 equal quarterly installments starting May 16, 2026.
• Following these transactions, Antoon beneficially owns 289,493 shares of common stock.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive filing. While there was a tax-related sale, the significant grant of new restricted stock units, including performance-based awards, indicates continued executive incentive and confidence in future performance.

Positives

• Grant of 42,910 new restricted stock units (RSUs) indicates continued executive compensation and retention.
• Grant of 43,162 performance-based RSUs, with performance conditions for 2025 certified, suggests achievement of company goals.
• The vesting schedules for both RSU awards provide long-term incentives for the executive.

Negatives

• Sale of 9,289 shares of common stock, even if for tax purposes, reduces the executive's direct ownership in the company.

Risks

• The value of the acquired restricted stock units is contingent on the future market price of CS Disco's common stock.
• Vesting of RSUs is subject to the reporting person's continuous service to the Issuer.

Future Outlook

The acquired restricted stock units are scheduled to vest in quarterly installments, with the first vesting date set for May 16, 2026, and continuing thereafter, contingent on Melanie Antoon's continuous service to CS Disco, Inc.

Management Comments

• The Reporting Person did not sell or otherwise dispose of any of the shares reported on this Form 4 for any reason other than to cover required taxes and fees.
• The Compensation Committee certified the achievement of performance-based vesting conditions pertaining to 2025 performance on February 18, 2026.

Industry Context

StockSavvy.ai notes that Form 4 filings are standard disclosures for insider transactions, providing transparency into executive stock ownership changes. The combination of tax-related sales and new RSU grants is a common pattern for executive compensation, reflecting both liquidity needs and ongoing incentive alignment.

Corporate Governance

Related Party Transactions

• The reported transactions involve an executive officer (Melanie Antoon) and the company (CS Disco, Inc.), which are inherently related party dealings.
• The sale of shares was a mandatory transaction to cover taxes and fees related to the settlement of restricted stock units, a common practice in executive compensation.
• The acquisition of restricted stock units is part of the executive's compensation package.

Stakeholder Impact

• Shareholders: Minor impact, as these are routine insider transactions. The RSU grants align executive incentives with shareholder value over the long term.

Next Steps

• First vesting of 42,910 RSUs on May 16, 2026.
• First vesting of remaining performance-based RSUs on May 16, 2026.
• Subsequent quarterly vesting of both RSU awards thereafter, subject to continuous service.
• Release of 2025 earnings, after which 1/4th of the performance-based RSUs will vest.

Key Dates

Recommendation

This Form 4 filing details routine insider transactions, including a tax-related stock sale and the grant of new restricted stock units as part of executive compensation. While the RSU grants are a positive for executive alignment, the filing does not contain sufficient information regarding the company's overall financial performance, strategic direction, or market position to warrant a 'buy' or 'sell' recommendation. Therefore, a 'hold' recommendation is appropriate, pending further comprehensive analysis of the company's broader financial disclosures.

Keywords

CS Disco, LAW, Melanie Antoon, SEC Form 4, Insider Transaction, Restricted Stock Units, RSU, Executive Compensation, Stock Sale, Tax Withholding, Corporate Officer