Form 4: Zscaler Executive Raj Judge Granted Over 77,000 Restricted Stock Units

Zscaler, Inc. has disclosed that Raj Judge, EVP of Corporate Strategy & Ventures and a Director, was granted a total of 77,096 Restricted Stock Units (RSUs) set to vest in quarterly installments beginning June 15, 2025.

Summary

• Raj Judge, Zscaler's EVP of Corporate Strategy & Ventures and a Director, was granted 67,148 Restricted Stock Units (RSUs) on June 3, 2025, which will vest in 16 equal quarterly installments starting June 15, 2025.
• An additional 9,948 Restricted Stock Units (RSUs) were granted to Raj Judge on June 3, 2025, set to vest in 4 equal quarterly installments beginning June 15, 2025.
• The reported shares are represented by RSUs, which are a common form of equity compensation for executives.
• The beneficial ownership of common stock following these transactions is 69,298 shares for the first grant and 79,246 shares for the second grant, indicating the total potential shares upon full vesting.

Sentiment

Score: 7

Explanation: The document reports a standard equity grant to a key executive, which is generally viewed positively as it aligns management's interests with shareholders and is a common retention tool. There are no negative implications or unexpected events reported.

Positives

• The grant of Restricted Stock Units (RSUs) to a key executive and director aligns management's interests with those of shareholders, incentivizing long-term performance.
• Equity compensation is a standard practice for attracting and retaining top talent in the technology sector.

Future Outlook

The RSU grants indicate a long-term incentive structure for the executive, with vesting scheduled over multiple years, aligning future compensation with company performance.

Industry Context

The grant of Restricted Stock Units is a common and standard practice within the technology industry for compensating and retaining key executives, aligning their financial interests with the long-term success of the company.

Comparison to Industry Standards

• The use of Restricted Stock Units (RSUs) as a form of executive compensation is a widely adopted practice across the technology sector, including companies like Microsoft, Apple, and Google, which frequently use RSUs to incentivize performance and retention.
• The vesting schedules (16 and 4 equal quarterly installments) are typical for long-term incentive plans, comparable to those seen at other large-cap tech companies aiming to retain talent over multi-year periods.

Related Party Transactions

• The document details an equity grant of 77,096 Restricted Stock Units from Zscaler, Inc. to Raj Judge, an executive and director of the company. This is a standard form of compensation and a common related-party transaction in the context of executive incentive plans.

Stakeholder Impact

• Shareholders: The RSU grants align the executive's financial incentives with the long-term performance of the company, potentially benefiting shareholders through improved company value.
• Employees: This compensation structure may serve as a benchmark or incentive for other employees, demonstrating the company's commitment to equity-based rewards.

Next Steps

• The Restricted Stock Units will begin vesting in quarterly installments starting June 15, 2025, over periods of four years (for 67,148 RSUs) and one year (for 9,948 RSUs).

Key Dates

Keywords

Zscaler, ZS, Restricted Stock Units, RSU, Executive Compensation, Insider Transaction, SEC Form 4, Equity Grant, Corporate Governance