Form 4: Alphatec Holdings CEO Patrick Miles Receives Restricted Stock Units in Lieu of Salary

Alphatec Holdings CEO Patrick Miles received 16,475 restricted stock units (RSUs) on April 1, 2025, as part of an employee salary conversion plan.

Summary

• On April 1, 2025, Patrick Miles, CEO of Alphatec Holdings, received 16,475 restricted stock units (RSUs).
• These RSUs were granted as part of an employee salary conversion plan adopted by the Compensation Committee on March 31, 2025.
• The RSUs are in lieu of a percentage of Miles' cash salary for the period between March 31, 2025, and December 21, 2025.
• Each RSU represents the right to receive one share of Alphatec's common stock, contingent upon stockholder approval of an amendment to the 2016 Equity Incentive Plan.
• The RSUs will vest in two equal installments on August 5, 2025, and December 5, 2025.
• The salary to RSU conversion price is based on the closing price of Alphatec's common stock on March 31, 2025.
• Miles also directly owns 5,874,078 shares of common stock and indirectly owns 10,900 shares through an IRA and 250,000 shares through MOM, LLC.

Sentiment

Score: 6

Explanation: Neutral sentiment. The document simply reports a transaction related to executive compensation. The impact is dependent on stockholder approval and future stock performance.

Positives

• The employee salary conversion plan may align management's interests with those of shareholders.
• The vesting schedule of the RSUs (August 5, 2025, and December 5, 2025) could incentivize continued performance.

Negatives

• The issuance of RSUs is contingent on stockholder approval of an amendment to the 2016 Equity Incentive Plan, which may not be guaranteed.
• The conversion of salary to RSUs could reduce Miles' immediate cash compensation.

Risks

• Failure to obtain stockholder approval for the amendment to the 2016 Equity Incentive Plan would impact the issuance of the RSUs.
• The value of the RSUs is subject to the volatility of Alphatec's stock price.

Future Outlook

The issuance of RSUs is contingent on stockholder approval of an amendment to the issuer's 2016 Equity Incentive Plan to authorize sufficient additional shares for issuance.

Industry Context

The use of RSUs as part of executive compensation is a common practice in the healthcare and medical device industry to align management incentives with shareholder value. Many companies use a mix of salary, bonus, and equity-based compensation.

Comparison to Industry Standards

• Companies like Medtronic, Stryker, and Johnson & Johnson also utilize equity-based compensation, including RSUs and stock options, for their executives.
• The specific amount and vesting schedule of equity grants vary based on company size, performance, and industry benchmarks.
• Alphatec's approach of offering RSUs in lieu of salary is less common but can be seen in smaller, growth-oriented companies to conserve cash.

Stakeholder Impact

• Shareholders: Potential dilution if the amendment to the Equity Incentive Plan is approved.
• Employees: The salary conversion plan may impact employee cash compensation and incentivize stock performance.
• Executives: Aligns executive compensation with stock performance.

Next Steps

• Stockholder vote on the amendment to the 2016 Equity Incentive Plan.
• Vesting of the RSUs on August 5, 2025, and December 5, 2025, contingent on stockholder approval.

Key Dates

Keywords

Alphatec Holdings, ATEC, Patrick Miles, Restricted Stock Units, RSUs, Salary Conversion Plan, Equity Incentive Plan, Stock Options, Compensation