Form 4: Alphatec Holdings EVP, Sales Receives Restricted Stock Units in Lieu of Salary

David Sponsel, EVP of Sales at Alphatec Holdings, received 3,866 restricted stock units (RSUs) on April 1, 2025, as part of an employee salary conversion plan.

Summary

• David Sponsel, the EVP of Sales at Alphatec Holdings, Inc., received 3,866 restricted stock units (RSUs) on April 1, 2025.
• 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 portion of Sponsel's cash salary for the period between March 31, 2025, and December 21, 2025.
• Each RSU represents the right to receive one share of Alphatec Holdings' 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.
• Following the transaction, Sponsel beneficially owns 672,843 shares of common stock.

Sentiment

Score: 6

Explanation: The sentiment is neutral. It's a routine disclosure of an executive's compensation. The use of RSUs can be seen as a positive for aligning employee interests, but also indicates a potential need to manage cash flow.

Positives

• The employee salary conversion plan may help Alphatec Holdings conserve cash.
• Granting RSUs aligns employee interests with those of shareholders.

Risks

• The issuance of shares underlying the RSUs is contingent upon stockholder approval of an amendment to the 2016 Equity Incentive Plan.
• If stockholder approval is not obtained, the RSUs may not be convertible to shares.

Future Outlook

The document does not contain specific forward-looking statements beyond the vesting schedule of the RSUs and the requirement for stockholder approval of the equity incentive plan amendment.

Industry Context

Using RSUs as part of compensation is a common practice in the industry to align employee incentives with company performance and conserve cash. This is especially true for growth-oriented companies in the medical device sector.

Comparison to Industry Standards

• Many companies in the medical device industry, such as Medtronic, Stryker, and Johnson & Johnson, utilize equity-based compensation plans, including RSUs and stock options, to attract and retain talent.
• The specific terms of these plans, such as vesting schedules and the percentage of salary converted to equity, can vary widely based on company size, financial performance, and strategic objectives.
• Alphatec's approach of granting RSUs in lieu of a portion of salary is similar to practices seen in other companies aiming to manage cash flow while still providing competitive compensation packages.

Stakeholder Impact

• Shareholders: Potential dilution if the RSUs are converted to shares.
• Employees: Provides an opportunity to own company stock and align interests with shareholders.

Next Steps

• Stockholder approval of an amendment to the issuer's 2016 Equity Incentive Plan to authorize sufficient additional shares for issuance.
• Vesting of the RSUs on August 5, 2025, and December 5, 2025.

Key Dates

Keywords

Alphatec Holdings, ATEC, Restricted Stock Units, RSUs, David Sponsel, EVP Sales, Salary Conversion Plan, Equity Incentive Plan, Beneficial Ownership, Form 4