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

Rhea-AI Summary

Chegg (NYSE: CHGG), a leading student-first learning platform, announced equity awards on June 12, 2024, under the Chegg 2023 Equity Inducement Plan. The awards, granted by the Compensation Committee, provide restricted stock units (RSUs) representing 32,797 shares to two new hires. One employee will have 728 RSUs vest one-third after 12 months and the rest quarterly over 24 months. The other employee will have 32,069 RSUs vest half after 12 months and the rest quarterly over 12 months. These awards comply with NYSE Rule 303A.08, which allows employment inducement awards.

Positive

• Chegg grants RSUs representing 32,797 shares to new employees, demonstrating investment in talent.
• Equity awards comply with NYSE Rule 303A.08, ensuring regulatory adherence.

Negative

• Issuing 32,797 shares could lead to potential shareholder dilution.
• Long vesting periods may not immediately retain top talent.

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

Two newly hired employees received, in the aggregate, awards of restricted stock units (“RSUs”) representing 32,797 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 one of the newly hired employees, 728 of the RSUs will vest with respect to one-third of the shares underlying the award after 12 months of such 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 the second newly hired employees, 32,069 of the RSUs will vest with respect to one-half of the shares underlying the award after 12 months of such 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, 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/20240614121173/en/

Heather Hatlo Porter, press@chegg.com

Source: Chegg

FAQ

What is Chegg's recent equity award announcement?

Chegg announced equity awards on June 12, 2024, granting RSUs representing 32,797 shares to two new hires under the 2023 Equity Inducement Plan.

How many shares were granted in Chegg's latest equity awards?

Chegg granted restricted stock units representing 32,797 shares.

When will the RSUs for Chegg's new hires vest?

For one employee, 728 RSUs will vest one-third after 12 months, with the rest vesting quarterly over 24 months. For the other, 32,069 RSUs will vest half after 12 months, with the rest vesting quarterly over 12 months.

What is NYSE Rule 303A.08 related to Chegg's equity awards?

NYSE Rule 303A.08 allows companies to grant employment inducement awards, which Chegg used for its recent equity awards.

How does Chegg's new equity award affect current shareholders?

The issuance of 32,797 new shares could lead to shareholder dilution.