Form 4: LifeStance Health Group CFO Granted Stock Options

Ryan McGroarty, CFO of LifeStance Health Group, was granted stock options on March 17, 2025, including both time-vesting and performance-vesting options.

Summary

• Ryan McGroarty, the Chief Financial Officer and Treasurer of LifeStance Health Group, was granted stock options on March 17, 2025.
• The grant includes options to purchase 725,689 shares of LifeStance Health Group's common stock at an exercise price of $6.89.
• The options are granted under the LifeStance Health Group, Inc. 2021 Equity Incentive Plan.
• The options consist of both time-vesting and performance-vesting components.
• 362,844 shares are subject to time-based vesting, vesting as to 25% on each of the first three anniversaries of the vesting commencement date, March 17, 2025.
• 362,845 shares are subject to timeand performance-based vesting, vesting as to up to 25% on each of the first three anniversaries of the vesting commencement date, March 17, 2025.
• Any portion of the Performance-Vesting Option eligible to vest as of such measurement date that did not vest pursuant to the performance-based vesting criteria will be eligible to vest on a quarterly basis thereafter, subject to the same performance-based vesting criteria.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, which is generally viewed positively as it aligns management interests with shareholders. The presence of performance-based vesting further enhances the positive sentiment.

Positives

• The granting of stock options aligns the CFO's interests with the long-term performance of the company.
• The performance-based vesting component incentivizes the CFO to achieve specific performance goals.
• The equity incentive plan is a common practice to attract and retain key executives.

Risks

• The performance-based vesting criteria are not specified, making it difficult to assess the likelihood of the options vesting.
• The value of the options is dependent on the future stock price of LifeStance Health Group, which is subject to market risk.

Future Outlook

The document does not contain specific forward-looking statements beyond the vesting schedule of the options.

Industry Context

Granting stock options to executives is a common practice in the healthcare industry to incentivize performance and align management's interests with shareholders. The vesting schedule is typical for such grants.

Comparison to Industry Standards

• Stock option grants are a standard component of executive compensation packages across various industries, including healthcare.
• Companies like Teladoc Health and Amwell also utilize equity-based compensation to incentivize their executives.
• The vesting schedules, typically ranging from 3 to 5 years, are in line with industry norms.

Stakeholder Impact

• Shareholders may view the stock option grant positively as it incentivizes the CFO to improve company performance.
• Employees may see the grant as a sign of confidence in the company's future.

Key Dates