Form 4: Alphatec Holdings CFO Awarded Restricted Stock Units Following Performance Review

Alphatec Holdings' Chief Financial Officer, John Todd Koning, received multiple grants of restricted stock units (RSUs) on January 29, 2025, following the company's performance review.

Summary

• On January 29, 2025, Alphatec Holdings awarded John Todd Koning, the Chief Financial Officer, a total of 254,872 restricted stock units (RSUs).
• 120,952 RSUs were granted based on the satisfaction of performance criteria for the fiscal year ended December 31, 2024, and will vest in three equal installments on March 5, 2025, 2026, and 2027.
• An additional 114,322 RSUs were awarded, vesting in three equal installments on March 5, 2026, 2027, and 2028.
• Finally, 19,598 RSUs were granted in lieu of a portion of the CFO's 2024 cash bonus, vesting on December 5, 2025.
• The grant amount for the bonus RSUs was determined using the 30-day average trading price of the company's common stock as of the close of market on January 24, 2025.

Sentiment

Score: 7

Explanation: The document reflects a positive sentiment as it shows the company is rewarding its CFO for performance, which is a good sign for investors. The RSU grants are a standard practice and do not indicate any negative issues.

Positives

• The granting of RSUs to the CFO indicates the company's recognition of his performance and contribution.
• The vesting schedule of the RSUs incentivizes the CFO to remain with the company for the long term.
• The use of RSUs in lieu of cash bonus aligns the CFO's interests with those of the shareholders.

Risks

• The value of the RSUs is subject to the volatility of the company's stock price.
• The vesting of the RSUs is contingent upon the CFO's continued employment with the company.

Industry Context

This type of equity compensation is common practice for publicly traded companies to incentivize and retain key executives.

Comparison to Industry Standards

• Granting RSUs to executives is a standard practice in the industry, often used to align management's interests with those of shareholders.
• The vesting schedules described are typical for RSU grants, with staggered vesting over multiple years to encourage long-term commitment.
• Companies like Medtronic and Stryker also use similar equity-based compensation plans for their executives.

Stakeholder Impact

• Shareholders may view the RSU grants positively as they align the CFO's interests with the company's long-term success.
• Employees may see this as a positive sign of the company's commitment to rewarding performance.

Key Dates

Keywords

Restricted Stock Units, RSUs, Executive Compensation, Stock Awards, Alphatec Holdings, ATEC, CFO, John Todd Koning