Form 4: DocuSign CLO Shaughnessy Reports Equity Transactions

DocuSign's Chief Legal Officer, James P. Shaughnessy, reported the vesting of restricted and performance stock units and related common stock transactions.

Summary

• James P. Shaughnessy, DocuSign's Chief Legal Officer, reported transactions involving the company's common stock and derivative securities.
• On December 15, 2025, Shaughnessy acquired 20,968 shares of common stock through the exercise or conversion of derivative securities at a price of $0.
• Concurrently, 9,860 shares of common stock were disposed of to satisfy tax obligations arising from the vesting and settlement of restricted stock units (RSUs) or performance-vested restricted stock units (PSUs), also at a price of $0.
• Following these transactions, Shaughnessy beneficially owns 66,550 shares of common stock directly.
• Multiple tranches of Restricted Stock Units (RSUs) vested on December 15, 2025, totaling 16,337 units, with vesting commencement dates ranging from June 10, 2022, to May 10, 2025.
• Performance Stock Units (PSUs) also vested on December 15, 2025, totaling 4,631 units, tied to the company's subscription revenue and free cash flow for the FY24 and FY25 performance periods.

Sentiment

Score: 5

Explanation: The filing is a routine report of insider equity transactions, primarily vesting events and tax withholdings. It does not contain information that would significantly alter the company's financial outlook or operational status, thus maintaining a neutral sentiment.

Positives

• The vesting of a significant number of Restricted Stock Units (RSUs) and Performance Stock Units (PSUs) indicates the reporting person's continued service and achievement of performance targets for PSUs.
• The acquisition of 20,968 shares of common stock through vesting adds to the executive's direct ownership in the company.

Negatives

• A portion of the vested shares (9,860 shares) was withheld by the Issuer to cover tax obligations, reducing the net shares received by the reporting person.

Risks

• The value of the vested equity awards remains subject to the market price fluctuations of DocuSign's common stock.
• Future vesting of PSUs is contingent upon DocuSign achieving specific subscription revenue and free cash flow targets for the FY24 and FY25 performance periods, which may not be fully met.
• Continued service is a condition for vesting of both RSUs and PSUs, posing a risk of forfeiture if employment terminates prior to vesting dates.

Future Outlook

Future equity compensation vesting for the Chief Legal Officer is tied to DocuSign's performance, specifically subscription revenue and free cash flow for the fiscal years ending January 31, 2024, and January 31, 2025. The maximum number of performance-based units that may vest is capped at 200% of the target number.

Industry Context

This Form 4 filing details routine insider equity transactions, reflecting the compensation structure for a senior executive. Such filings are standard disclosures for publicly traded companies and provide transparency into executive stock ownership and compensation practices.

Stakeholder Impact

• Shareholders: Provides transparency into executive compensation and ownership, which is a standard aspect of corporate governance.
• Employees: Reflects the company's equity compensation practices for senior leadership, which can be indicative of broader compensation strategies.

Next Steps

• Continued vesting of remaining Restricted Stock Units (RSUs) and Performance Stock Units (PSUs) according to their respective schedules and performance conditions.

Key Dates

Keywords

DocuSign, DOCU, Form 4, Insider Transaction, Equity Compensation, Restricted Stock Units, Performance Stock Units, Stock Vesting, Chief Legal Officer, James P. Shaughnessy