Form 4: Agilon Health CFO Timothy Bensley Reports Stock Transactions

Timothy Bensley, CFO of Agilon Health, reports the vesting and settlement of performance-based restricted stock units (PSUs) and shares withheld for tax obligations.

Summary

• On March 14, 2024, Timothy Bensley, the CFO of Agilon Health, had 14,945 shares of common stock vest as part of a performance-based restricted stock unit (PSU) award granted on April 14, 2021.
• The vesting of these PSUs was contingent upon Agilon Health achieving predetermined revenue and adjusted EBITDA goals over a three-year period from January 1, 2021, to December 31, 2023, with a total attainment of 100%.
• Additionally, 6,751 shares of common stock were withheld by Agilon Health to satisfy income tax withholding obligations related to the PSU settlement at a price of $5.23.
• Following these transactions, Bensley directly owns 43,365 shares of common stock, which includes restricted stock units.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The vesting of PSUs indicates that the company met its performance targets, which is a positive sign. However, the withholding of shares for tax obligations is a neutral event.

Positives

• The vesting of PSUs indicates that Agilon Health met its performance targets for revenue and adjusted EBITDA over the specified three-year period.
• The total attainment of 100% suggests strong financial performance during that time.

Negatives

• The withholding of shares to cover tax obligations reduces the number of shares Bensley ultimately receives.

Industry Context

Form 4 filings are standard practice and provide transparency into the transactions of company insiders, allowing investors to track ownership changes and potential alignment with company performance.

Comparison to Industry Standards

• Performance-based equity awards are a common compensation tool used by publicly traded companies to align executive incentives with shareholder value creation.
• The vesting of PSUs based on revenue and adjusted EBITDA targets is a typical approach to incentivize financial performance.
• Withholding shares for tax obligations is a standard procedure in equity compensation.

Stakeholder Impact

• Shareholders may view the vesting of PSUs as a positive sign, indicating that management is incentivized to achieve strong financial performance.
• Employees may be motivated by the company's achievement of its performance targets.

Key Dates