Form 4: Health Catalyst Executive Linda Llewelyn Awarded Restricted Stock Units

Linda Llewelyn, Chief People Officer of Health Catalyst, Inc., received awards of restricted stock units and performance-based restricted stock units.

Summary

• Linda Llewelyn, Chief People Officer of Health Catalyst, Inc., reported changes in beneficial ownership of the company's common stock.
• On February 20, 2025, Llewelyn was granted 69,000 restricted stock units (RSUs) and 11,750 performance-based restricted stock units (PRSUs) under the company's 2019 Stock Option and Incentive Plan.
• The RSUs vest over time, with 33.33% vesting on December 1, 2025, and the remaining 66.67% vesting in 8 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, Llewelyn beneficially owns 166,369 shares of common stock, which excludes 200 shares that were previously incorrectly reported.

Sentiment

Score: 7

Explanation: The document reflects standard executive compensation practices and achievement of performance goals, suggesting a neutral to slightly positive outlook.

Positives

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

Future Outlook

The vesting schedule of the RSUs suggests a continued role for Linda Llewelyn at Health Catalyst.

Industry Context

Equity compensation is a common practice in the technology industry to attract and retain key executives. The vesting schedule aligns the executive's interests with the long-term performance of the company.

Comparison to Industry Standards

• Stock option and incentive plans are standard practice among publicly traded companies, particularly in the tech sector, to align executive compensation with shareholder value.
• Vesting schedules, such as the one described for the RSUs, are common to ensure long-term commitment from executives.
• Performance-based restricted stock units (PRSUs) are also frequently used to incentivize executives to achieve specific financial or strategic goals, similar to those used by companies like Cerner (now Oracle Health) and Allscripts Healthcare Solutions.

Stakeholder Impact

• The equity awards align the executive's interests with those of shareholders, incentivizing her to drive long-term value creation.
• Employees may view the equity awards as a positive sign of the company's commitment to its leadership team.

Key Dates

Keywords

Health Catalyst, Linda Llewelyn, restricted stock units, performance-based restricted units, beneficial ownership, Form 4, HCAT, Chief People Officer, equity compensation