Form 4: Health Catalyst CEO Daniel D. Burton Awarded Restricted Stock Units and Performance-Based Restricted Stock Units

Daniel D. Burton, CEO of Health Catalyst, Inc., received awards of restricted stock units (RSUs) and performance-based restricted stock units (PRSUs) on February 20, 2025, according to a Form 4 filing.

Summary

• On February 20, 2025, Daniel D. Burton, CEO of Health Catalyst, Inc., was granted 296,000 restricted stock units (RSUs) and 75,437 performance-based restricted stock units (PRSUs).
• The RSUs will vest over time, with 33.33% vesting on December 1, 2025, and the remaining 66.67% vesting in eight equal quarterly installments.
• The PRSUs were awarded based on the company's achievement of certain performance criteria for the fiscal year ended December 31, 2024.
• Each RSU and PRSU represents a contingent right to receive one share of Health Catalyst's common stock.
• Following these transactions, Burton beneficially owns 1,499,484 shares of Health Catalyst common stock.

Sentiment

Score: 7

Explanation: The document indicates positive performance through the awarding of PRSUs and aligns executive interests with shareholder value through equity-based compensation.

Positives

• The award of PRSUs indicates that Health Catalyst met certain performance criteria for the fiscal year ended December 31, 2024, suggesting positive company performance.
• The vesting schedule of the RSUs incentivizes long-term commitment from the CEO.

Future Outlook

The vesting schedule of the RSUs suggests an expectation of continued service and contribution from the CEO.

Industry Context

Stock awards are a common practice in the technology industry to incentivize and retain key executives. The performance-based component aligns executive compensation with company performance.

Comparison to Industry Standards

• Stock option and RSU grants are standard compensation practices among publicly traded companies, particularly in the tech sector, to align executive interests with shareholder value.
• Companies like Cerner (now Oracle Health) and Allscripts also utilize similar equity-based compensation plans for their executives.
• The vesting schedules and performance metrics tied to these grants are often benchmarked against industry peers to ensure competitiveness and effectiveness in incentivizing performance.

Stakeholder Impact

• The stock awards align the CEO's interests with those of shareholders, potentially driving long-term value creation.
• Employees may view the performance-based awards as a positive sign of company success.

Key Dates

Keywords

Health Catalyst, Daniel D. Burton, RSU, PRSU, Stock Options, Beneficial Ownership, Form 4, HCAT