Form 4: DZS Inc. Chief Marketing Officer Reports Stock Transactions

Gunter Reiss, Chief Marketing Officer of DZS Inc., reports the vesting of restricted stock units and subsequent tax withholding.

Summary

• On September 6, 2024, Gunter Reiss, the Chief Marketing Officer of DZS Inc., had 8,333 restricted stock units vest.
• DZS Inc. withheld 3,496 shares of common stock at a price of $0.58 to satisfy tax withholding requirements.
• Reiss was also granted 25,000 restricted stock units that vest in three equal installments on September 6, 2024, 2025, and 2026.
• An additional 25,000 restricted stock units were granted, vesting in three equal installments on September 6, 2025, 2026, and 2027.
• Following these transactions, Reiss directly owns 21,399 shares of DZS Inc. common stock and 16,667 restricted stock units from the first grant.

Sentiment

Score: 6

Explanation: The document reflects standard executive compensation practices. It's neutral in sentiment as it simply reports transactions.

Positives

• The vesting of restricted stock units suggests continued employment and alignment with the company's long-term goals.

Future Outlook

The remaining restricted stock units will vest on September 6, 2025, 2026, and 2027, contingent upon continued employment with DZS Inc.

Industry Context

This filing is a routine disclosure related to executive compensation and is typical for publicly traded companies. It provides transparency into the equity holdings and transactions of company insiders.

Comparison to Industry Standards

• Equity compensation is a common practice in the tech industry to incentivize executives and align their interests with shareholders.
• Vesting schedules of three to four years are standard for restricted stock units.
• Companies like Cisco, Juniper Networks, and Nokia also use similar equity compensation plans for their executives.

Stakeholder Impact

• The vesting of restricted stock units dilutes existing shareholders' equity, although the impact is likely minimal given the relatively small number of shares involved.

Key Dates