Form 4: LivaNova CFO Shvartsburg Reports Equity Transactions
Insider Transaction Report
LivaNova PLC's Chief Financial Officer, Alex Shvartsburg, reported the vesting of various equity awards and new grants of restricted and performance stock units on March 30, 2026.
Summary
- CFO Alex Shvartsburg acquired 30,835 ordinary shares from vested restricted stock units (RSUs) and performance stock units (PSUs).
- 12,868 ordinary shares were disposed of to cover tax liabilities at a price of $61.27 per share.
- Following these transactions, Shvartsburg directly beneficially owns 44,647 ordinary shares.
- Performance Stock Units (PSUs) granted in 2023 vested based on strong performance: 122.0% for Free Cash Flow (FCF), 118.71% for Return on Investment Capital (ROIC), and 113.89% for relative Total Shareholder Return (rTSR).
- New equity awards granted on March 30, 2026, include 16,321 RSUs and 16,320 PSUs (5,440 for revenue growth, 5,440 for rTSR, 5,440 for adjusted EPS), with vesting scheduled through 2029.
Sentiment
Score: 8
Explanation: StockSavvy.ai views this filing positively due to the high achievement rates on performance-based equity awards, indicating strong company performance against key financial and market targets, which aligns executive incentives with shareholder interests.
Positives
- High achievement rates for performance stock units (PSUs) granted in 2023, with 122.0% for Free Cash Flow, 118.71% for Return on Investment Capital, and 113.89% for relative Total Shareholder Return, indicating strong company performance against targets.
- The vesting of significant equity awards aligns management's interests with long-term shareholder value.
Negatives
- Disposal of 12,868 shares to cover tax liabilities, which is a common practice but reduces the insider's direct holdings.
Risks
- RSUs and PSUs are subject to forfeiture prior to vesting, based on continued service and the terms of the applicable incentive award plans and award agreements.
Future Outlook
The company has granted new equity awards to its CFO, including Restricted Stock Units (RSUs) and Performance Stock Units (PSUs), with vesting schedules extending to 2029. These future PSUs are tied to performance targets such as revenue growth, relative total shareholder return (rTSR), and adjusted earnings per share (EPS) for the 2026-2028 performance period, indicating a continued focus on long-term strategic objectives and executive incentives.
Industry Context
StockSavvy.ai notes that the vesting of performance-based equity awards for a Chief Financial Officer, particularly with high achievement rates against Free Cash Flow, ROIC, and rTSR targets, is a common practice in the medical technology and healthcare industry. This structure aims to align executive incentives with shareholder value creation and operational efficiency, reflecting a broader industry trend towards performance-linked compensation.
Comparison to Industry Standards
- The use of Free Cash Flow (FCF), Return on Investment Capital (ROIC), and relative Total Shareholder Return (rTSR) as performance metrics for executive compensation is consistent with best practices observed in leading medical device and healthcare companies such as Medtronic, Abbott Laboratories, and Boston Scientific, which also tie a significant portion of executive pay to financial and market performance.
- The achievement rates of 113.89% to 122.0% against PSU targets suggest LivaNova's performance in these areas exceeded internal benchmarks, which is generally viewed favorably compared to peers who might report target or below-target achievements.
- The multi-year vesting schedules for both RSUs and PSUs, extending up to three years for new grants, are standard in the industry to promote long-term retention and strategic focus, similar to compensation structures at companies like Stryker and Edwards Lifesciences.
Corporate Governance
| Change Type | Description | Effective Date | Impact Assessment |
|---|---|---|---|
| Incentive Award Plan Update | References to the 2015 Incentive Award Plan, 2022 Incentive Award Plan, First Amended and Restated LivaNova PLC 2022 Incentive Award Plan, and Second Amended and Restated LivaNova PLC 2022 Incentive Award Plan, indicating ongoing evolution of executive compensation frameworks. | NA | These plans govern the granting and vesting of equity awards, aligning executive compensation with company performance and shareholder interests. |
Stakeholder Impact
- Shareholders: The vesting of performance-based awards at above-target levels suggests strong company performance, potentially benefiting shareholders through increased value. New grants align executive incentives with future shareholder value creation.
- Employees (specifically the CFO): The transactions represent a significant component of the CFO's compensation, reflecting rewards for past performance and incentives for future contributions.
Next Steps
- First vesting installment for RSUs granted on March 30, 2026, will occur on March 30, 2027.
- PSUs granted on March 30, 2026, will vest or lapse on March 30, 2029, based on performance during the 2026-2028 period.
- Continued service is required for all unvested RSUs and PSUs to prevent forfeiture.
Key Dates
| Date | Description |
|---|---|
| 03/30/2022 | Grant date for RSUs subject to four-year vesting, with the first installment vesting on March 30, 2023. |
| 03/30/2023 | Grant date for RSUs subject to four-year vesting, with the first installment vesting on March 30, 2024. Also, grant date for PSUs with performance period 2023-2025. |
| 03/30/2024 | Grant date for RSUs subject to four-year vesting, with the first installment vesting on March 30, 2025. |
| 03/30/2025 | Grant date for RSUs subject to three-year vesting, with the first installment vesting on March 30, 2026. |
| 12/31/2025 | End of performance period for PSUs granted on March 30, 2023, based on rTSR. |
| 03/30/2026 | Earliest transaction date; vesting of RSUs and PSUs; new grants of RSUs and PSUs. |
| 04/01/2026 | Signature date of the reporting person's attorney-in-fact. |
| 03/30/2027 | First vesting installment for RSUs granted on March 30, 2026. |
| 12/31/2028 | End of performance period for PSUs granted on March 30, 2026, based on revenue growth, rTSR, and adjusted EPS. |
| 03/30/2029 | Vesting date for PSUs granted on March 30, 2026. |
Keywords
LivaNova PLC, LIVN, Alex Shvartsburg, CFO, SEC Form 4, Insider Trading, Equity Awards, Restricted Stock Units, Performance Stock Units, Executive Compensation, Share Vesting, Free Cash Flow, Return on Investment Capital, Total Shareholder Return, Revenue Growth, Adjusted EPS
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