Form 4: Beachbody COO Modifies Stock Options Following Repricing
SEC Form 4
Beachbody's Chief Operating Officer, Kathy P. Vrabeck, modified her stock options following a repricing of the exercise price by the company's board.
Summary
- Kathy P. Vrabeck, Chief Operating Officer of Beachbody Company, Inc., has modified her stock options.
- The modifications occurred on November 13, 2024, following a board decision on September 19, 2024, to reprice the options.
- The repricing involved canceling old options with higher exercise prices and issuing new options with an exercise price of $6.43 per share.
- The new options are for a total of 29,630 shares of Class A Common Stock.
- The original exercise prices of the options being replaced were $17.35 and $29.01.
- The options vest in increments of 25% per year over four years from their respective grant dates, subject to continued employment.
Sentiment
Score: 6
Explanation: The document describes a routine stock option repricing, which is neither particularly positive nor negative. It's a neutral event that is expected in certain circumstances.
Positives
- The repricing of stock options may incentivize the COO to improve company performance.
- The new exercise price of $6.43 is based on the closing price of the company's common stock on the effective date of the repricing.
Risks
- The repricing of stock options could be seen as a negative signal if the company's stock price does not improve.
- The vesting schedule of the options is dependent on continued employment, which could be a risk if the COO leaves the company.
Industry Context
Stock option repricing is a common practice, especially when a company's stock price has declined significantly. This action is often taken to retain and incentivize key executives.
Comparison to Industry Standards
- Repricing stock options is a common practice in the tech and growth sectors when a company's stock price has fallen below the original option exercise price.
- Companies like Peloton and Beyond Meat have also repriced options in the past to retain talent.
- The new exercise price of $6.43 is based on the closing price of the company's common stock on the effective date of the repricing, which is a standard practice.
Stakeholder Impact
- Shareholders may view the repricing as a positive move to retain and incentivize key executives.
- Employees holding stock options will benefit from the lower exercise price.
Key Dates
| Date | Description |
|---|---|
| 2021-04-26 | First vesting date for some of the stock options. |
| 2022-04-18 | Grant date for some of the stock options. |
| 2022-05-15 | Grant date for some of the stock options. |
| 2023-03-15 | Grant date for some of the stock options. |
| 2023-11-21 | Effective date of the 1-for-50 reverse stock split. |
| 2024-09-19 | Date the board decided to reprice the stock options. |
| 2024-11-13 | Effective date of the stock option repricing. |
| 2024-11-15 | Date of the SEC filing. |
| 2031-07-01 | Expiration date for some of the stock options. |
| 2032-04-17 | Expiration date for some of the stock options. |
| 2032-05-14 | Expiration date for some of the stock options. |
| 2033-03-14 | Expiration date for some of the stock options. |
Keywords
stock options, repricing, executive compensation, insider trading, Beachbody, COO, Kathy P. Vrabeck
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