Form 4: Alphatec Holdings Executive Receives Over 230,000 Restricted Stock Units

Tyson E. Marshall, General Counsel & Corp. Sec. of Alphatec Holdings, Inc., was granted over 230,000 restricted stock units (RSUs) on January 29, 2025, as part of performance-based awards and a bonus substitution.

Summary

• Tyson E. Marshall, General Counsel & Corp. Sec. of Alphatec Holdings, Inc., received a total of 233,120 restricted stock units (RSUs) on January 29, 2025.
• These RSUs were granted in three separate awards: 105,833 RSUs for meeting performance criteria for the fiscal year ended December 31, 2024, 114,322 RSUs as a standard grant, and 12,965 RSUs in lieu of a portion of his 2024 cash bonus.
• The performance-based RSUs vest in three equal installments on March 5, 2025, March 5, 2026, and March 5, 2027.
• The standard RSUs vest in three equal installments on March 5, 2026, March 5, 2027, and March 5, 2028.
• The RSUs granted in lieu of a cash bonus vest on December 5, 2025.
• Each RSU represents a contingent right to receive one share of Alphatec Holdings, Inc.'s common stock.
• The grant amount for the bonus substitution was determined using the 30-day average trading price of the company's common stock as of market close on January 24, 2025.

Sentiment

Score: 7

Explanation: The document reflects standard executive compensation practices, which are generally viewed positively as they align management with shareholder interests. There are no significant negative implications, but the potential for dilution is a minor concern.

Positives

• The granting of RSUs to a key executive suggests the company is incentivizing performance and aligning management interests with shareholders.
• The vesting schedule of the RSUs encourages long-term commitment from the executive.
• The use of RSUs in lieu of cash bonus may help the company manage cash flow.

Risks

• The vesting of a large number of RSUs could potentially dilute existing shareholders if the company issues new shares to cover the grants.
• The value of the RSUs is tied to the company's stock price, which can fluctuate.

Industry Context

The granting of stock-based compensation is a common practice in the corporate world, particularly for executive roles, to align their interests with the company's performance and shareholder value. This is a standard method for incentivizing key personnel in the medical device industry.

Comparison to Industry Standards

• Stock-based compensation is a common practice across the medical device industry, with companies like Medtronic, Stryker, and Johnson & Johnson also using RSUs and stock options to incentivize their executives.
• The vesting schedules described are typical for RSU grants, often spanning multiple years to encourage long-term commitment.
• The use of a 30-day average trading price to determine the value of the bonus substitution RSUs is a standard valuation method.

Stakeholder Impact

• Shareholders may experience potential dilution if new shares are issued to cover the RSU grants.
• Employees may view this as a positive sign of the company's commitment to its leadership.
• The executive is incentivized to perform well to increase the value of the RSUs.

Key Dates

Keywords

Restricted Stock Units, RSUs, Stock Options, Executive Compensation, Alphatec Holdings, ATEC, Tyson E. Marshall, General Counsel, Corporate Secretary, Equity Awards