Chegg Reports New Hire Equity Grants Under NYSE Rule 303A.08

Rhea-AI Summary

Chegg (NYSE: CHGG), a student-first connected learning platform, announced that on May 12, 2024, its Compensation Committee granted equity awards under the Chegg 2023 Equity Inducement Plan. Six new employees received restricted stock units (RSUs) totaling 34,773 shares of common stock. Four employees will have 15,116 RSUs that vest at 33 1/3% after 12 months of service, with the remaining vesting quarterly over 24 months. The other two employees will have 19,657 RSUs that vest 50% after 12 months of service, with the remaining vesting quarterly over 12 months.

Positive

• Equity awards granted to new hires, potentially attracting top talent.
• Total of 34,773 RSUs indicate significant investment in new employees.
• Four employees have a structured vesting schedule encouraging long-term retention over 24 months.
• Two employees have a quicker vesting schedule, allowing for faster stock benefits.

Negative

• Dilution risk for current shareholders due to issuance of 34,773 new shares.
• Long vesting periods could lead to uncertainties about employee retention.

SANTA CLARA, Calif.--(BUSINESS WIRE)-- Chegg, Inc. (NYSE:CHGG), the leading student-first connected learning platform, today announced that on May 12, 2024, its Compensation Committee granted equity awards pursuant to the Chegg 2023 Equity Inducement Plan.

Six newly hired employees received, in the aggregate, awards of restricted stock units (“RSUs”) representing 34,773 shares of Chegg common stock, in reliance on the employment inducement award exception to New York Stock Exchange Listing Rule 303A.08.

With respect to four of the newly hired employees, an aggregate of 15,116 of the RSUs will vest with respect to the first 33 1/3% of the shares underlying each award after 12 months of each such respective employee’s continuous service, and the remaining underlying shares will vest in equal quarterly installments for 24 months, after the completion of each full quarter of continuous service thereafter.

With respect to two of the newly hired employees, an aggregate of 19,657 of the RSUs will vest with respect to the first 50% of the shares underlying each award after 12 months of each such respective employee’s continuous service, and the remaining underlying shares will vest in equal quarterly installments for 12 months, after the completion of each full quarter of continuous service thereafter.

About Chegg

Millions of people all around the world learn with Chegg. No matter the goal, level, or style, Chegg helps learners learn with confidence. We provide 24/7 on-demand support, and our personalized learning assistant leverages the power of artificial intelligence (“AI”), more than a hundred million pieces of proprietary content, as well as a decade of learning insights. Our platform also helps learners build essential life and job skills to accelerate their path from learning to earning, and we work with companies to offer learning programs for their employees. Chegg is a publicly held company and trades on the NYSE under the symbol CHGG. For more information, visit www.chegg.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240515617840/en/

Tonya B. Hudson, press@chegg.com

Source: Chegg

FAQ

What did Chegg announce on May 12, 2024?

Chegg announced that its Compensation Committee granted equity awards under the Chegg 2023 Equity Inducement Plan.

How many restricted stock units were granted by Chegg?

Chegg granted restricted stock units (RSUs) totaling 34,773 shares of common stock.

What is the vesting schedule for the RSUs granted by Chegg?

For four employees, 33 1/3% of RSUs will vest after 12 months, with the rest vesting quarterly over 24 months. For two employees, 50% will vest after 12 months, with the rest vesting quarterly over 12 months.

Why did Chegg grant these RSUs?

Chegg granted these RSUs as part of their 2023 Equity Inducement Plan to attract and retain new talent.

What is the total number of shares represented by the RSUs granted by Chegg?

The RSUs represent a total of 34,773 shares of Chegg common stock.