Form 4: Zuora Director Timothy Haley Reports Acquisition of 624 Shares of Class A Common Stock

Director Timothy Haley acquired 624 shares of Zuora Inc. Class A Common Stock on March 1, 2024, as part of the company's Non-Employee Director Compensation Program.

Summary

• On March 1, 2024, Timothy M. Haley, a director of Zuora Inc., acquired 624 shares of Class A Common Stock.
• The acquisition was part of Zuora's Non-Employee Director Compensation Program, where directors can elect to receive restricted stock units (RSUs) in lieu of cash compensation.
• The RSUs vest in four equal installments on March 31, 2024, June 30, 2024, September 30, 2024, and December 31, 2024, contingent upon continued service to Zuora.
• The price of the stock at the time of acquisition was not explicitly stated, but the RSUs were granted based on the increase in the director's FY25 compensation fee divided by the closing price of Zuora's Class A Common Stock on the grant date.
• Following the transaction, Haley directly owns 59,745 shares of Class A Common Stock and indirectly owns 34,246 shares through Haley-McGourty Partners and 156,793 shares through the Haley-McGourty Family Trust U/D/T 9/27/96.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. It reflects a routine transaction indicating a director's continued involvement with the company and participation in its compensation program.

Positives

• Director's participation in the Non-Employee Director Compensation Program demonstrates confidence in the company's future.
• The vesting schedule incentivizes continued service and commitment from the director.

Future Outlook

The director will continue to vest in the remaining RSUs contingent upon continued service to Zuora through December 31, 2024.

Industry Context

This filing is a routine disclosure of insider transactions, which are common in publicly traded companies. It reflects a director's participation in a pre-defined compensation program.

Comparison to Industry Standards

• Director compensation programs involving stock grants are common among publicly traded companies, particularly in the tech sector.
• Companies like Salesforce, Oracle, and SAP also utilize similar equity-based compensation plans for their directors and executives to align their interests with those of shareholders.
• The vesting schedule of the RSUs is fairly standard, with quarterly or annual vesting periods being typical.

Stakeholder Impact

• The transaction has a minimal direct impact on stakeholders.
• It signals continued alignment between the director's interests and those of the shareholders.

Key Dates