Form 4: Envista CFO Hammes Boosts Equity Holdings

Envista Holdings Corp's CFO, Eric D. Hammes, acquired new restricted stock units, performance share units, and stock options, while also having shares withheld for tax obligations.

Summary

• Eric D. Hammes, Chief Financial Officer of Envista Holdings Corp (NVST), reported transactions on February 25, 2026.
• 2,045 shares of common stock were disposed of at a price of $29.59 per share to satisfy tax withholding obligations related to the vesting of Restricted Stock Units (RSUs).
• 16,055 Restricted Stock Units (RSUs) were acquired at a price of $0, which will vest ratably over three years on each anniversary of the grant date, subject to continued service. Each RSU converts to one share of common stock.
• 29,225 Performance Share Units (PSUs) were acquired at a price of $0, which will vest based on the achievement of identified performance measures over a three-year period. The reported amount represents target performance, with potential payout ranging from 0% to 200%.
• 38,040 Employee Stock Options were acquired with an exercise price of $29.59, which will vest ratably over three years on each anniversary of the grant date, subject to continued service, and expire on February 25, 2036.
• Following these transactions, Eric D. Hammes beneficially owns 110,798 shares of common stock directly, 29,225 Performance Share Units, and 38,040 Employee Stock Options.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive development, reflecting standard executive compensation practices that align the CFO's interests with long-term company performance and shareholder value.

Positives

• Acquisition of 16,055 Restricted Stock Units (RSUs) at $0, aligning management's interests with long-term shareholder value.
• Grant of 29,225 Performance Share Units (PSUs) at $0, incentivizing the CFO to achieve specific company performance targets over a three-year period.
• Grant of 38,040 Employee Stock Options with an exercise price of $29.59, providing a direct incentive for stock price appreciation.
• The vesting schedules for RSUs, PSUs, and stock options over three years promote executive retention and long-term commitment.

Negatives

• 2,045 shares of common stock were withheld to cover tax obligations, representing a reduction in direct share ownership.

Future Outlook

The future outlook for Eric D. Hammes's equity compensation is tied to the company's performance over the next three years for the Performance Share Units and continued service for the Restricted Stock Units and Employee Stock Options. The PSUs offer a potential payout range of 0% to 200% based on performance metrics.

Industry Context

StockSavvy.ai notes that the grant of Restricted Stock Units, Performance Share Units, and Employee Stock Options to a Chief Financial Officer is a standard practice in executive compensation across various industries, particularly in the healthcare and dental technology sectors where Envista Holdings operates. This structure aims to align executive incentives with long-term shareholder value creation and company performance, a common trend among publicly traded companies seeking to retain key talent and drive strategic objectives.

Comparison to Industry Standards

• The mix of time-based (RSUs) and performance-based (PSUs) equity awards, alongside stock options, is consistent with best practices in executive compensation for companies of similar size and industry, such as Dentsply Sirona Inc. (XRAY) or Align Technology, Inc. (ALGN).
• The three-year vesting schedule for RSUs and options, and a three-year performance period for PSUs, aligns with typical long-term incentive plans designed to promote executive retention and sustained performance, comparable to programs at companies like Zimmer Biomet Holdings, Inc. (ZBH).
• The withholding of shares for tax obligations is a standard, non-cash method for executives to cover tax liabilities upon the vesting of equity awards, a common feature in compensation plans across the S&P 500.

Stakeholder Impact

• Shareholders: The equity grants align the CFO's financial interests with shareholder value creation, as a significant portion of his compensation is tied to stock performance and company-specific metrics.
• Employees: The compensation structure for a key executive like the CFO can set a precedent or reflect the company's overall approach to incentivizing its leadership team.

Next Steps

• Continued service by Eric D. Hammes for vesting of RSUs and stock options.
• Achievement of identified performance measures over the next three years for the vesting of Performance Share Units.
• Potential exercise of employee stock options prior to their expiration on February 25, 2036.

Key Dates

Keywords

Envista Holdings Corp, NVST, Form 4, Insider Transaction, Eric D. Hammes, Chief Financial Officer, CFO, Restricted Stock Units, RSU, Performance Share Units, PSU, Employee Stock Option, Equity Compensation, Executive Compensation, Stock Grant, Tax Withholding