Form 4: Alphatec Holdings COO Scott Lish Awarded Significant Restricted Stock Units

Alphatec Holdings' Chief Operating Officer, Scott Lish, received a substantial grant of restricted stock units (RSUs) on January 29, 2025, as part of performance-based compensation and a bonus substitution.

Summary

• On January 29, 2025, Alphatec Holdings awarded a total of 314,269 restricted stock units (RSUs) to Chief Operating Officer Scott Lish.
• 120,952 RSUs were granted based on the achievement of performance criteria for the fiscal year ended December 31, 2024, vesting in three equal installments on March 5, 2025, 2026, and 2027.
• An additional 173,417 RSUs were awarded, vesting in three equal installments on March 5, 2026, 2027, and 2028.
• 19,900 RSUs were granted in lieu of a portion of the 2024 cash bonus, vesting on December 5, 2025.
• The grant amount for the bonus substitution 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.
• Each RSU represents a contingent right to receive one share of Alphatec Holdings' common stock.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, which is generally viewed positively as it aligns management interests with shareholders. The sentiment is neutral to slightly positive.

Positives

• The grant of RSUs to the COO aligns his interests with the long-term performance of the company.
• The vesting schedules of the RSUs encourage continued service and performance from the COO.
• The use of RSUs in lieu of cash bonus may help preserve the company's cash reserves.

Risks

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

Industry Context

The granting of stock-based compensation is a common practice in the industry to incentivize and retain key executives. The vesting schedules are typical for such grants.

Comparison to Industry Standards

• Stock-based compensation is a standard practice for publicly traded companies, particularly in the technology and healthcare sectors, to align executive interests with shareholder value.
• Companies like Medtronic, Stryker, and Johnson & Johnson also use RSUs as part of their executive compensation packages, with similar vesting schedules.
• The vesting periods of three to four years are common to ensure long-term commitment from executives.

Stakeholder Impact

• Shareholders may view the RSU grants positively as they incentivize management to improve company performance.
• Employees may see the RSU grants as a sign of the company's commitment to its leadership.

Key Dates

Keywords

Restricted Stock Units, RSU, Stock Compensation, Executive Compensation, Alphatec Holdings, ATEC, Scott Lish, Chief Operating Officer