Form 4: LegalZoom Director Nathan Gooden Granted 22,831 Restricted Stock Units

LegalZoom.com, Inc. Director Nathan Gooden was granted 22,831 restricted stock units, increasing his beneficial ownership to 70,484 shares.

Summary

• Nathan Gooden, a Director of LegalZoom.com, Inc. (LZ), acquired 22,831 shares of common stock on June 3, 2025.
• These shares represent Restricted Stock Units (RSUs) awarded to Mr. Gooden at an acquisition price of $0 per share.
• The RSUs are scheduled to vest in a single installment on the earlier of (a) the close of business on the day before the Issuer's next annual meeting of stockholders or (b) the one-year anniversary of the award date (June 3, 2026).
• Vesting of the RSUs is contingent upon Mr. Gooden's continuing service to LegalZoom.com, Inc.
• Following this transaction, Mr. Gooden's total beneficial ownership in LegalZoom.com, Inc. is 70,484 shares.

Sentiment

Score: 7

Explanation: The grant of equity to a director is generally a positive sign, indicating continued alignment of interests and retention of key personnel. It's a standard compensation practice and does not suggest any negative underlying issues.

Positives

• The grant of 22,831 Restricted Stock Units (RSUs) to Director Nathan Gooden aligns his interests with long-term shareholder value.
• The increase in beneficial ownership to 70,484 shares demonstrates continued commitment from a key director to the company's future performance.

Risks

• The vesting of the 22,831 Restricted Stock Units is subject to Nathan Gooden's continuing service to LegalZoom.com, Inc., meaning the shares could be forfeited if his service ceases before the vesting conditions are met.

Future Outlook

The vesting schedule of the granted Restricted Stock Units, tied to future service, indicates an expectation of continued tenure for Director Nathan Gooden through at least the next annual meeting or the one-year anniversary of the award date.

Industry Context

This Form 4 filing reflects a standard practice of executive and director compensation through equity awards in the technology and legal services industry, aiming to align insider interests with long-term company performance and shareholder value.

Comparison to Industry Standards

• Equity grants like Restricted Stock Units (RSUs) with service-based vesting are a common compensation mechanism for directors and executives across publicly traded companies.
• This practice is consistent with corporate governance best practices to incentivize long-term commitment and performance, similar to compensation structures seen in other legal tech or SaaS companies.

Stakeholder Impact

• Shareholders: The grant of RSUs to a director aligns their interests with long-term shareholder value, potentially leading to better governance and performance.
• Employees: No direct impact on general employees is mentioned in this filing.

Next Steps

• The 22,831 RSUs will vest in a single installment on the earlier of the day before LegalZoom's next annual meeting of stockholders or the one-year anniversary of the award date (June 3, 2026).
• Nathan Gooden's continued service to LegalZoom.com, Inc. is required for the RSUs to vest and convert into common stock.

Key Dates

Recommendation

Keywords

LegalZoom, LZ, Form 4, SEC Filing, Insider Trading, Restricted Stock Units, RSUs, Director Compensation, Beneficial Ownership, Nathan Gooden