Form 4: Zscaler CEO Jagtar Singh Chaudhry Sells Shares to Cover Tax Obligations

Zscaler CEO Jagtar Singh Chaudhry sold 2,863 shares of common stock to cover tax obligations related to vesting restricted stock units.

Summary

• Zscaler CEO Jagtar Singh Chaudhry sold 2,863 shares of common stock on December 17, 2024.
• The sale was executed at a weighted average price of $200.3192 per share.
• The shares were sold to cover tax withholding obligations associated with the vesting of restricted stock units.
• The sale was not a discretionary trade by the CEO.
• Following the transaction, Mr. Chaudhry directly owns 358,569 shares of common stock.
• He also indirectly owns 2,177,994 shares through The RSJ Trust, 24,363,128 shares through The RSP Trust, and 6,666 shares through The P. Jyoti Chaudhry Family Trust.

Sentiment

Score: 5

Explanation: The document reflects a routine transaction for tax purposes, not a significant event that would indicate positive or negative sentiment.

Management Comments

• The sale was mandated by the Issuer's election under its equity incentive plans to cover tax withholding obligations and does not represent a discretionary trade by the Reporting Person.

Industry Context

This is a routine transaction for executives who receive equity compensation. It is common for executives to sell shares to cover tax obligations when restricted stock units vest.

Comparison to Industry Standards

• Similar transactions are common among executives at publicly traded companies, particularly in the technology sector, where equity compensation is a significant part of overall remuneration.
• For example, executives at companies like CrowdStrike, Palo Alto Networks, and Okta often engage in similar sales to manage their tax liabilities related to stock awards.
• These transactions are typically disclosed through SEC Form 4 filings, providing transparency to investors.

Stakeholder Impact

• The transaction is unlikely to have a significant impact on shareholders as it is a routine sale to cover tax obligations.

Key Dates

Keywords

Zscaler, Jagtar Singh Chaudhry, stock sale, insider trading, tax obligations, restricted stock units, equity compensation