Form 4: DOMO CEO James Joshua G Boosts Equity Stake with Significant RSU and PSU Grants

DOMO, INC. CEO James Joshua G has significantly increased his direct beneficial ownership through the acquisition of 550,000 Class B Common Stock shares via restricted stock units and performance-based restricted stock units.

Summary

• James Joshua G, Founder and CEO of DOMO, INC., acquired 550,000 shares of Class B Common Stock through restricted stock units (RSUs) and performance-based restricted stock units (PSUs) on July 2, 2025.
• This acquisition includes 100,000 RSUs and 450,000 PSUs, both granted at a price of $0.
• Following these transactions, direct beneficial ownership of Class B Common Stock increased to 1,578,213 shares.
• Total beneficial ownership also includes indirect holdings: 116,600 Class B shares via James Family Charitable Remainder Trust, 429,810 Class B shares and 3,263,659 Class A shares (convertible to Class B) via Cocolalla, LLC, 10,000 Class B shares via Cinnamon Birch LLC, and 2,143 Class B shares by spouse.

Sentiment

Score: 8

Explanation: The acquisition of significant equity by the CEO, particularly through performance-based units tied to stock price targets, strongly aligns management's interests with shareholder value creation, which is generally viewed positively.

Positives

• CEO James Joshua G acquired a substantial 550,000 shares of Class B Common Stock, demonstrating increased personal equity stake in DOMO, INC.
• The acquisition includes 450,000 performance-based restricted stock units (PSUs), which align the CEO's compensation directly with the achievement of specific stock price targets ranging from $20 to $45, incentivizing long-term shareholder value creation.
• The grants, particularly the PSUs, indicate a strong commitment from management to future company performance and growth.

Risks

• The 100,000 restricted stock units (RSUs) are subject to an applicable vesting schedule, and unvested units will be cancelled if the reporting person ceases to be a service provider.
• The 450,000 performance-based restricted stock units (PSUs) are subject to both continued service and the achievement of specific stock price targets ranging from $20 to $45 over four performance periods, meaning the full grant may not vest if these targets are not met.

Future Outlook

The performance-based restricted stock units (PSUs) are tied to future stock price targets ranging from $20 to $45, indicating management's outlook on potential stock appreciation and commitment to achieving specific valuation milestones.

Industry Context

Form 4 filings are standard regulatory disclosures for insider transactions, providing transparency into executive equity movements. The granting of restricted stock units (RSUs) and performance-based restricted stock units (PSUs) to a CEO is a common executive compensation practice across industries, designed to align management incentives with shareholder interests.

Comparison to Industry Standards

• The use of performance-based restricted stock units (PSUs) with specific stock price targets ($20 to $45) is a common mechanism in executive compensation, similar to practices seen in technology companies like Salesforce or Adobe, which often tie executive bonuses and equity grants to revenue growth, profitability, or stock performance milestones.
• The structure of these grants aims to incentivize long-term value creation, a practice widely adopted by publicly traded companies to ensure management's interests are aligned with those of shareholders.

Related Party Transactions

• Indirect beneficial ownership is reported through entities such as the James Family Charitable Remainder Trust, Cocolalla, LLC, and Cinnamon Birch LLC, as well as by spouse, indicating transactions or holdings involving related parties. The reporting person is the Manager of Cocolalla, LLC, with voting and dispositive power over its shares.

Stakeholder Impact

• Shareholders: The significant equity grants, particularly the performance-based units, align the CEO's financial interests directly with shareholder value creation, potentially leading to increased confidence and long-term strategic focus.
• Employees: While not directly impacted by this specific filing, the CEO's increased stake and performance incentives could signal stability and a commitment to growth, indirectly benefiting employees through a stronger company.

Next Steps

• Vesting of the 100,000 restricted stock units (RSUs) according to their applicable schedule.
• Achievement of stock price targets ranging from $20 to $45 for the 450,000 performance-based restricted stock units (PSUs) over four performance periods, beginning one year from the grant date.

Key Dates

Keywords

DOMO, CEO, equity grant, RSU, PSU, insider transaction, beneficial ownership, executive compensation, stock units, Form 4