Form 4: Zscaler Chief Legal Officer Sells Shares Under 10b5-1 Plan

Zscaler's Chief Legal Officer, Robert Schlossman, sold a total of 6,158 shares of common stock between December 17th and 18th, 2024, under a pre-arranged 10b5-1 trading plan.

Summary

• Robert Schlossman, Chief Legal Officer of Zscaler, Inc., executed multiple sales of Zscaler common stock on December 17th and 18th, 2024.
• The sales were conducted under a pre-arranged Rule 10b5-1 trading plan adopted on June 29, 2024.
• On December 17th, 3,258 shares were sold at a weighted average price of $200.3196 to cover tax obligations related to vesting restricted stock units.
• On December 18th, a total of 2,900 shares were sold in multiple transactions at varying weighted average prices ranging from $186.0808 to $199.72.
• Following these transactions, Mr. Schlossman directly owns 110,465 shares and indirectly owns 66 shares through his spouse.

Sentiment

Score: 5

Explanation: The document reflects a routine transaction under a pre-arranged trading plan, with no indication of positive or negative sentiment. It is a neutral event.

Risks

• Executive stock sales can sometimes be perceived negatively by the market, potentially impacting investor sentiment.

Industry Context

Executive stock sales are a common occurrence in publicly traded companies, often part of pre-arranged trading plans to manage personal finances and comply with insider trading regulations. This activity is not unusual and is a normal part of executive compensation.

Comparison to Industry Standards

• Many executives at publicly traded companies use 10b5-1 trading plans to sell shares, which is a standard practice to avoid accusations of insider trading.
• The volume of shares sold by Mr. Schlossman is not unusual for an executive at his level, and the price ranges are within the normal fluctuations of the stock price.
• Comparing to other tech companies, similar sales by executives are regularly reported through Form 4 filings.

Stakeholder Impact

• The stock sales may have a minor impact on the share price, but are unlikely to significantly affect the company's operations or long-term prospects.
• Shareholders may view the sales as a neutral event, given the pre-arranged nature of the transactions.

Key Dates

Keywords

Zscaler, Robert Schlossman, stock sale, Form 4, 10b5-1 plan, insider trading, executive compensation, equity