Form 4: Butterfly Network Director Elazer R. Edelman Reports Acquisition of Restricted Stock Units

Director Elazer R. Edelman reports acquisition of 157,894 restricted stock units (RSUs) in Butterfly Network, Inc.

Summary

• On June 10, 2024, Elazer R. Edelman, a director of Butterfly Network, Inc. (BFLY), acquired 157,894 restricted stock units (RSUs).
• These RSUs were granted as part of the annual compensation for non-employee directors, according to the Issuer's Amended and Restated Nonemployee Director Compensation Policy.
• Each RSU represents the right to receive one share of Class A common stock upon vesting.
• The RSUs vest fully on the date of the Issuer's 2025 Annual Stockholders Meeting, contingent upon continued service on the Board of Directors.
• Following this transaction, Edelman directly owns 287,012 shares of Class A Common Stock.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The acquisition of RSUs by a director is a routine event and signals alignment of interests with shareholders. There are no explicit negative implications.

Positives

• The grant of RSUs to a director aligns their interests with those of the shareholders, incentivizing them to work towards the company's long-term success.
• The vesting schedule tied to continued service on the board encourages long-term commitment from the director.

Future Outlook

The vesting of the RSUs is contingent upon continued service on the Board of Directors until the 2025 Annual Stockholders Meeting.

Industry Context

This filing is a routine disclosure related to director compensation, which is a common practice in publicly traded companies to align the interests of directors with those of shareholders.

Comparison to Industry Standards

• Director compensation packages, including grants of restricted stock units, are a standard practice among publicly traded companies.
• The vesting schedule of the RSUs, contingent on continued service, is also a common feature in such compensation plans.
• Comparing the size of the RSU grant to those of directors at similarly sized medical device companies would provide a benchmark for assessing its relative value.

Stakeholder Impact

• The RSU grant aligns the director's interests with those of the shareholders, potentially leading to decisions that benefit the company's long-term value.
• The vesting schedule encourages the director's continued service, providing stability and experience to the board.

Key Dates