Form 4: Agilon Health Chief Markets Officer Benjamin Shaker Settles Performance-Based Stock Units

Benjamin Shaker, Chief Markets Officer of Agilon Health, settled performance-based restricted stock units (PSUs) on March 14, 2024, resulting in the acquisition of 274,455 shares of common stock and the withholding of 95,266 shares for tax obligations.

Summary

• On March 14, 2024, Benjamin Shaker, the Chief Markets Officer of Agilon Health, settled performance-based restricted stock units (PSUs).
• This resulted in the acquisition of 274,455 shares of common stock.
• The vesting of the PSUs was based on Agilon Health's revenue and adjusted EBITDA goals over a three-year period from January 1, 2021, to December 31, 2023, with a total attainment of 100%.
• The issuer withheld 95,266 shares of common stock to satisfy income tax withholding obligations.
• Following these transactions, Shaker directly owns 258,732 shares of common stock, which includes restricted stock units.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The vesting of PSUs indicates that the company met its performance goals, which is a positive sign. However, it's a routine insider transaction, so the impact is limited.

Positives

• The vesting of PSUs indicates that Agilon Health achieved 100% of its predetermined revenue and adjusted EBITDA goals over the three-year performance period.

Industry Context

This filing is a routine disclosure of insider transactions, which are common in publicly traded companies as part of executive compensation packages. The vesting of PSUs tied to revenue and adjusted EBITDA goals aligns executive incentives with company performance.

Comparison to Industry Standards

• Performance-based equity compensation is a common practice among publicly traded healthcare companies to align executive compensation with company performance.
• Companies like Oak Street Health (before being acquired by CVS Health) and Alignment Healthcare also utilized similar performance-based equity awards tied to metrics like revenue growth, membership growth, and profitability.
• The specific metrics and vesting schedules vary by company, but the underlying principle of linking executive pay to key performance indicators is consistent across the industry.

Stakeholder Impact

• The vesting of PSUs and the associated tax withholding have a minor impact on the company's share structure and cash flow.
• Shareholders may view the achievement of performance goals positively, as it indicates the company is executing its strategy effectively.

Key Dates