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Zoom CEO sold all of his common shares

investors.zoom.us

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Re: Zoom CEO sold all of his common shares

#21

Post by afrozenator »

duxup wrote: post #3

Sales can happen for any number of reasons. Let me know when a CEO buys...

+1 to this. There was a study IIRC that insider buys in open market were the only reliable signal from insider buys and sells -- especially if the insiders had been officers (directors/executives) for a while.

Re: Zoom CEO sold all of his common shares

#22

Post by mcintyre1994 »

xoxoy wrote: post #12
dkyc wrote: post #7

This is complete nonsense. He sold about $23m worth of stock [1], while he owned about 22% of stock at the time of IPO, worth roughly ~$10b in total. [1] https://www.gurufocus.com/news/1135874/zoom-video-communicat...

The very last line item on Table 1 shows 0 shares owned after his final sale.

The first line implies 0 owned before, because he acquired X and now owns X afterward.

Re: Zoom CEO sold all of his common shares

#23

Post by rodw »

dkyc wrote: post #7

This is complete nonsense. He sold about $23m worth of stock [1], while he owned about 22% of stock at the time of IPO, worth roughly ~$10b in total. [1] https://www.gurufocus.com/news/1135874/zoom-video-communicat...

Is there any way to edit the HN post title to be more accurate?

"Zoom CEO sold $24m worth of stock" is still a pretty compelling headline.

Re: Zoom CEO sold all of his common shares

#24

Post by kbal11 »

mcintyre1994 wrote: post #15

How do you interpret this? The first row he acquired 70,143 at a cost of $0, and the amount he owns after that is 70,143? So he didn't have any before the 11th? Then he sells them all for $LOTS, and then acquires another 70,143 at a cost of $0, and sells them all again? Is this just him cashing out a bonus paid in class A when his actual holdings (assuming he held any before the 11th) are in some other class?

If you scroll down in the sheet, you can see that he also disposed of the same number of class B shares. He is simply converting a small number of his class B shares (not publicly traded, 10X voting rights) to class A so he can sell them.

Re: Zoom CEO sold all of his common shares

#25

Post by gbear605 »

Perhaps this isn’t the best thing for the company, but personally, I can’t imagine having even ten million dollars in stocks (what seems to be the value of the stocks sold per my calculation) and wanting to just keep them there, especially in a single stock. Sell it all, and donate all but three or four million. That’s more enough money to live the rest of your life in a very comfortable way. What’s the point of having more? It’s just a rat race to show off to the people around you.

That said, he’s already a billionaire, so it’s not like this is actually a significant change in value for him.

Re: Zoom CEO sold all of his common shares

#26

Post by [deleted] »

xoxoy wrote: post #12
dkyc wrote: post #7

This is complete nonsense. He sold about $23m worth of stock [1], while he owned about 22% of stock at the time of IPO, worth roughly ~$10b in total. [1] https://www.gurufocus.com/news/1135874/zoom-video-communicat...

The very last line item on Table 1 shows 0 shares owned after his final sale.

[deleted]

Re: Zoom CEO sold all of his common shares

#28

Post by [deleted] »

mcintyre1994 wrote: post #15

How do you interpret this? The first row he acquired 70,143 at a cost of $0, and the amount he owns after that is 70,143? So he didn't have any before the 11th? Then he sells them all for $LOTS, and then acquires another 70,143 at a cost of $0, and sells them all again? Is this just him cashing out a bonus paid in class A when his actual holdings (assuming he held any before the 11th) are in some other class?

[deleted]

Re: Zoom CEO sold all of his common shares

#30

Post by nostrademons »

It looks like this is part of a normal "exercise and sell all your options as soon as you receive them" plan. Notice that on 5/11, he goes from 70,143 shares to 0 over the course of the day. And then again on 5/12, he goes from 70,143 shares to 0 over the course of the day. It wouldn't have gone back up to 70,143 the next day if he'd just sold his lump sum of founder shares.
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