Form 4: Establishment Labs Holdings CEO Receives Stock and Option Awards

Juan Jose Chacon Quiros, CEO of Establishment Labs Holdings, received stock units and options under the company's 2018 Equity Incentive Plan.

Summary

• On March 6, 2024, Juan Jose Chacon Quiros, the CEO of Establishment Labs Holdings Inc., was granted 13,519 common shares and options to purchase 19,236 shares.
• The stock units were awarded under the Issuer's 2018 Equity Incentive Plan.
• One-fourth of the shares subject to the award and option will vest on March 6, 2025, and annually thereafter, contingent upon continued service.
• Chacon Quiros also indirectly owns 1,128,264 common shares through Sariel LLC, where he is a shareholder with voting and dispositive power.
• The exercise price of the stock option is $49.25.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive as it reflects standard executive compensation practices that align management interests with shareholders.

Positives

• The grant of stock and options to the CEO aligns his interests with those of the shareholders.
• The vesting schedule incentivizes continued service and commitment to the company's long-term success.

Future Outlook

The vesting schedule suggests an expectation of continued service from the CEO through at least March 6, 2028.

Industry Context

Stock option and equity grants are common practices to incentivize and retain key executives in publicly traded companies, particularly in growth-oriented sectors.

Comparison to Industry Standards

• Equity compensation packages for CEOs in the medical device industry typically include a mix of stock options, restricted stock units, and performance-based awards.
• The vesting schedule of one-fourth annually is a standard practice to ensure long-term commitment.
• Comparable companies such as InMode Ltd. and Cutera, Inc. also utilize similar equity compensation strategies for their executive teams.

Stakeholder Impact

• The equity grants aim to align the CEO's interests with those of the shareholders, potentially driving long-term value creation.
• Employees may be indirectly impacted by the CEO's incentivization to improve company performance.

Key Dates