Form 4: Evolent Health Executive Aammaad Shams Reports Stock Transactions

Aammaad Shams, Chief Accounting Officer of Evolent Health, reports acquisition and disposal of Class A Common Stock due to vesting of restricted stock units and settlement of performance-based share units.

Summary

• On March 1, 2025, Aammaad Shams, Chief Accounting Officer of Evolent Health, had shares of Class A Common Stock withheld to satisfy tax obligations upon vesting of restricted stock units at a price of $8.99.
• On March 3, 2025, Mr. Shams acquired 25,151 shares of Class A Common Stock through restricted stock units granted under the Evolent Health, Inc. 2015 Omnibus Incentive Compensation Plan.
• These securities vest at a rate of 34% on March 3, 2026, and 33% on March 3, 2027, and March 3, 2028.
• Also on March 3, 2025, Mr. Shams acquired 6,650 shares upon settlement of performance-based share units (PSUs) awarded on March 1, 2022, which vested on December 31, 2024.
• On the same day, 3,168 shares were withheld to satisfy tax obligations related to the settlement of these PSUs at a price of $8.77.
• Following these transactions, Mr. Shams beneficially owns 75,466 shares of Class A Common Stock.

Sentiment

Score: 6

Explanation: Neutral sentiment as the document primarily reports routine stock transactions related to executive compensation.

Positives

• The vesting of restricted stock units and settlement of performance-based share units indicate that Mr. Shams is incentivized to perform well for the company.
• The vesting schedule of the restricted stock units (34% on March 3, 2026, and 33% on March 3, 2027, and March 3, 2028) suggests a long-term commitment.

Future Outlook

The vesting schedule of the restricted stock units indicates future equity compensation for Mr. Shams over the next three years.

Industry Context

Form 4 filings are standard practice for reporting insider transactions and provide transparency to investors regarding management's stake in the company.

Comparison to Industry Standards

• Equity compensation is a common practice in the healthcare technology industry to align management's interests with those of shareholders.
• Companies like Cerner (now Oracle Health) and Teladoc Health also utilize stock options and restricted stock units as part of their compensation packages.
• The vesting schedules and performance-based components are typical for executive compensation plans in publicly traded companies.

Stakeholder Impact

• The transactions provide transparency to shareholders regarding executive compensation and ownership.
• The vesting of equity awards incentivizes management to create long-term value for shareholders.

Key Dates