Form 4: DocuSign Executive Receives Stock Awards

DocuSign's Chief Legal Officer, James P. Shaughnessy, was granted restricted and performance stock units on July 9, 2026.

Summary

• James P. Shaughnessy, Chief Legal Officer of DocuSign, Inc., received grants of Restricted Stock Units (RSUs) and Performance Stock Units (PSUs) on July 9, 2026.
• The RSU grant consists of 49,555 units, which will vest in equal quarterly installments over three years, commencing May 10, 2026, contingent on continued service.
• The PSU grants are divided into two tranches, each for 24,777 units, totaling 49,554 PSUs.
• One tranche of PSUs is tied to subscription revenue goals over a three-year performance period, with a potential payout of up to 200% of the target amount, vesting on June 10, 2029.
• The second tranche of PSUs is linked to free cash flow goals over the same three-year period, also with a potential payout of up to 200% of the target and vesting on June 10, 2029.
• Vesting for all awards is subject to the reporting person's continued service with DocuSign, with certain exceptions.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral filing, as it represents a standard grant of equity compensation to an executive, reflecting ongoing incentive programs rather than a significant change in company performance or strategy.

Positives

• Grant of equity awards (RSUs and PSUs) to a key executive, indicating a commitment to retaining and incentivizing leadership.
• Performance-based PSUs are structured to reward achievement of specific financial goals (subscription revenue and free cash flow), aligning executive compensation with company performance.
• The structure allows for potential upside (up to 200% of target) if performance targets are exceeded.

Negatives

• The awards are contingent on continued service, meaning the executive could forfeit unvested awards if they leave the company before vesting.
• The performance metrics for PSUs are subject to achieving specific, potentially challenging, financial goals.

Risks

• Failure to meet subscription revenue or free cash flow targets could result in the forfeiture of PSUs.
• The executive's departure from the company before vesting dates would lead to the cancellation of unvested RSUs and PSUs.
• The value of the awards is subject to the market performance of DocuSign's common stock.

Future Outlook

The future outlook for the awarded stock units depends on the company's achievement of subscription revenue and free cash flow goals, as well as the continued service of the reporting person. The RSUs are set to vest over three years, while PSUs vest on a specific date in 2029 if performance targets are met.

Industry Context

StockSavvy.ai notes that the issuance of performance-based equity awards to senior executives is a common practice in the software and technology sector, designed to align leadership incentives with long-term company growth and financial performance. This aligns with industry trends of using equity compensation to drive shareholder value.

Stakeholder Impact

• Shareholders: The issuance of equity awards is a form of compensation that can dilute existing share ownership over time, but it also aims to align executive interests with shareholder value creation.
• Employees: The performance metrics tied to PSUs may influence company-wide focus and efforts towards achieving subscription revenue and free cash flow goals.
• Management: The executive is incentivized to perform and remain with the company to realize the full value of these awards.

Next Steps

• Continued service by James P. Shaughnessy through the vesting dates for the RSUs.
• Achievement of subscription revenue and free cash flow targets by DocuSign for the PSUs to vest.
• Monitoring of the vesting schedules and performance against goals for the awarded equity.

Key Dates

Keywords

Form 4, SEC Filing, DocuSign, DOCU, Stock Awards, Restricted Stock Units, RSU, Performance Stock Units, PSU, Executive Compensation, Insider Trading, Beneficial Ownership