Form 4: DocuSign CRO's Equity Vesting & Tax Withholding

DocuSign's Chief Revenue Officer, Paula Hansen, reported the vesting of equity awards and subsequent tax-related share dispositions.

Summary

• Paula Hansen, DocuSign's Chief Revenue Officer, reported transactions involving common stock, Restricted Stock Units (RSUs), and Performance Stock Units (PSUs).
• On September 15, 2025, Hansen acquired 80,455 shares of common stock through the vesting of equity awards.
• Concurrently, 40,857 shares of common stock were disposed of to cover tax obligations related to the vesting of RSUs and PSUs.
• Following these transactions, Hansen directly beneficially owns 64,723 shares of common stock.
• Derivative security transactions included the conversion of 63,920 RSUs and 4,033 RSUs into common stock.
• Additionally, 7,324 PSUs and 5,178 PSUs were converted into common stock.
• Remaining beneficial ownership of derivative securities includes 191,761 RSUs, 36,298 RSUs, 27,303 PSUs, and 38,034 PSUs.

Sentiment

Score: 5

Explanation: The filing is a routine insider transaction report (Form 4) detailing the vesting of equity awards and subsequent tax-related share dispositions. It does not contain information that would significantly alter the company's financial outlook or operational performance, thus maintaining a neutral sentiment.

Positives

• Vesting of 80,455 shares of common stock, 63,920 RSUs, 4,033 RSUs, 7,324 PSUs, and 5,178 PSUs indicates the achievement of service or performance conditions for equity awards.
• The vesting of RSUs and PSUs represents a realization of compensation for the Chief Revenue Officer, aligning executive incentives with company performance and retention.

Negatives

• 40,857 shares of common stock were withheld by the Issuer to satisfy tax obligations, reducing the net shares received by the Reporting Person.

Future Outlook

Future vesting of RSUs will occur quarterly over three years, commencing August 10, 2024, and quarterly over four years, commencing May 10, 2025. Future vesting of PSUs tied to FY25 performance metrics will occur with 1/3 vesting after the one-year anniversary of the vesting commencement/grant date, and the balance in eight equal quarterly installments thereafter, subject to continued service.

Industry Context

This filing represents a routine disclosure of executive equity compensation, common across publicly traded companies, particularly in the technology sector, where stock-based awards are a significant component of executive pay. It reflects the ongoing compensation structure for a key executive at DocuSign.

Stakeholder Impact

• Shareholders: Minor dilution from the issuance of shares upon vesting of equity awards, which is a standard component of executive compensation and helps align executive interests with shareholder value.
• Employees: Reflects standard executive compensation practices, potentially signaling stability in executive incentives and the company's commitment to performance-based rewards.

Next Steps

• Continued vesting of Restricted Stock Units (RSUs) according to their respective schedules (25% over first year, then 12 equal quarterly installments over three years from August 10, 2024; quarterly over four years from May 10, 2025).
• Continued vesting of Performance Stock Units (PSUs) based on FY25 subscription revenue and free cash flow, with 1/3 vesting after the one-year anniversary of the vesting commencement/grant date and the balance in eight equal quarterly installments, subject to continued service.

Key Dates

Keywords

DocuSign, DOCU, SEC Form 4, Insider Transaction, Equity Compensation, Restricted Stock Units, Performance Stock Units, Executive Compensation, Stock Vesting, Tax Withholding