Form 4: ZoomInfo CEO Henry Schuck Corrects Ownership Reporting, Receives New Stock Grants

ZoomInfo CEO Henry Schuck files a Form 4 to correct previously reported beneficial ownership and disclose new grants of restricted stock units and performance restricted stock units.

Summary

• Henry Schuck, CEO of ZoomInfo Technologies Inc., filed a Form 4 with the SEC.
• The filing corrects the total number of shares beneficially owned, which was incorrectly reported in previous filings on February 8, 2023, and June 16, 2023.
• Schuck directly owns 10,288,001 shares of common stock.
• He indirectly owns 237,376 shares through a trust and 5,803,333 shares through DO Holdings (WA), LLC.
• Schuck received a grant of 220,589 restricted stock units (RSUs) on May 29, 2024, which vest over time.
• He also received a grant of 294,118 performance restricted stock units (PRSUs) on May 29, 2024, which vest upon achievement of stock price targets and continued service.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The correction of previously reported data is a good governance practice. The grants of RSUs and PRSUs are standard executive compensation practices and align management's interests with shareholders.

Positives

• The grant of RSUs and PRSUs to the CEO aligns his interests with the long-term performance of the company.
• The vesting schedules for the PRSUs are tied to specific stock price targets, incentivizing the CEO to drive shareholder value.

Risks

• Failure to achieve the stock price targets associated with the PRSUs could result in the CEO not receiving the full potential value of the grant.
• The vesting of RSUs and PRSUs is contingent on the CEO's continued service, creating a potential risk if he were to leave the company before the vesting dates.

Future Outlook

The vesting of the RSUs and PRSUs is tied to future dates and performance targets, indicating an expectation of continued growth and stock price appreciation for ZoomInfo.

Industry Context

Grants of restricted stock units and performance-based stock units are common practices in the tech industry to incentivize and retain key executives. The vesting schedules and performance targets are designed to align management's interests with those of shareholders.

Comparison to Industry Standards

• Executive compensation packages in the tech industry often include a mix of base salary, stock options, restricted stock units, and performance-based incentives.
• Companies like Salesforce, Oracle, and Adobe also utilize similar equity-based compensation structures to motivate their executives.
• The size of the RSU and PRSU grants is likely benchmarked against peer companies of similar size and market capitalization in the software-as-a-service (SaaS) sector.

Stakeholder Impact

• The grants of RSUs and PRSUs could positively impact shareholders if the stock price targets are achieved, leading to increased shareholder value.
• The vesting schedules tied to continued service incentivize the CEO to remain with the company, providing stability for employees and other stakeholders.

Key Dates