Form 4: LegalZoom Director Nathan Gooden Acquires Shares Through Compensation Policy

Director Nathan Gooden acquired 6,715 shares of LegalZoom common stock as part of the company's Eligible Director Compensation Policy.

Summary

• On January 15, 2025, Nathan Gooden, a director of LegalZoom.com, Inc., acquired 6,715 shares of common stock.
• The acquisition was made under the Issuer's Eligible Director Compensation Policy.
• Gooden elected to receive his annual cash compensation in the form of restricted stock units (RSUs).
• The number of RSUs was calculated by dividing Gooden's expected fiscal 2025 cash retainer fees by the average closing price of LegalZoom's common stock over the 30 calendar day period ending five calendar days prior to the grant date.
• The price per share was $7.8184.
• Following the transaction, Gooden directly owns 47,653 shares of LegalZoom.
• The RSUs will vest in four quarterly installments on the last trading day of each fiscal quarter in 2025, contingent upon Gooden's continued service.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The transaction reflects a standard compensation practice and aligns director interests with shareholders.

Positives

• Director's decision to take compensation in stock aligns interests with shareholders.
• The Eligible Director Compensation Policy provides flexibility in compensation structure.

Future Outlook

The RSUs will vest in four quarterly installments on the last trading day of each fiscal quarter in 2025, subject to the Reporting Person's continued service to the Issuer through the applicable vesting date.

Industry Context

Director stock ownership is common and often viewed positively as it aligns management's interests with those of shareholders. Many companies offer stock-based compensation plans to attract and retain talent.

Comparison to Industry Standards

• Stock-based compensation for directors is a common practice across publicly traded companies.
• Companies like Docusign and Atlassian also utilize equity-based compensation for their board members.
• The specific amount and vesting schedules vary depending on the company's size, industry, and compensation philosophy.

Stakeholder Impact

• Shareholders may view the director's increased stock ownership positively.
• The transaction has no immediate impact on employees, customers, suppliers, or creditors.

Key Dates