Form 4: Establishment Labs Holdings Inc. Director Ann Custin Acquires Shares in Lieu of Cash Retainer

Director Ann Custin acquired 420 common shares of Establishment Labs Holdings Inc. (ESTA) on December 31, 2024, in lieu of a quarterly cash retainer payment.

Summary

• On December 31, 2024, Ann Custin, a director of Establishment Labs Holdings Inc. (ESTA), acquired 420 common shares.
• The shares were acquired in lieu of a quarterly cash retainer payment, as per the Issuer's Outside Director Compensation Policy.
• The price per share was $46.07.
• Following the transaction, Custin directly owns 16,187 common shares.
• The shares were issued pursuant to the Issuer's 2018 Equity Incentive Plan and determined based on the closing price of the Issuer's common shares on the last trading day of the quarter.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. A director accepting shares in lieu of cash is generally a positive signal, indicating confidence in the company's prospects. The transaction itself is routine and expected.

Positives

• A director taking shares in lieu of cash demonstrates confidence in the company's future.

Industry Context

Directors receiving shares as compensation is a common practice, aligning their interests with those of shareholders. This is a standard method of compensation for board members.

Comparison to Industry Standards

• Director compensation packages vary widely across the industry, but equity-based compensation is a common component.
• Companies like Align Technology (ALGN) and Intuitive Surgical (ISRG) also utilize equity-based compensation for their directors.
• The amount of equity granted depends on factors such as company size, performance, and industry benchmarks.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders as it aligns the director's interests with theirs.

Key Dates