Form 4: LivaNova PLC: Chief Human Resources Officer Kozmina Natalia Reports Grant of Stock Awards

Natalia Kozmina, Chief Human Resources Officer of LivaNova PLC, reports the grant of restricted stock units, performance stock units, and stock appreciation rights on March 30, 2025.

Summary

• Natalia Kozmina, Chief Human Resources Officer of LivaNova PLC, filed a Form 4 on April 1, 2025, reporting changes in beneficial ownership.
• On March 30, 2025, Kozmina was granted several equity awards under the LivaNova PLC 2022 Incentive Award Plan.
• These awards include 12,777 restricted stock units (RSUs), 6,388 restricted stock units (RSUs), performance stock units (PSUs) tied to free cash flow (3,194 units), return on invested capital (3,194 units), and total shareholder return (6,388 units), and 13,986 stock appreciation rights (SARs).
• The RSUs vest in equal annual installments over three years, starting March 30, 2026.
• The PSUs vest on March 30, 2028, based on the company's performance against pre-determined targets for free cash flow (FCF), return on invested capital (ROIC), and total shareholder return (TSR) over a three-year performance period.
• The SARs vest in equal annual installments over four years, starting March 30, 2026.
• The exercise price of the SARs is $39.13.
• All awards are subject to forfeiture prior to vesting.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, which is generally viewed neutrally to positively as it aligns management interests with shareholder value. The performance-based metrics suggest a focus on long-term growth and profitability.

Positives

• The equity grants align the executive's interests with those of the shareholders.
• The performance-based vesting of PSUs incentivizes the achievement of key financial metrics such as free cash flow, return on invested capital, and total shareholder return.

Risks

• The value of the awards is contingent on the company's performance and stock price.
• The executive may forfeit the awards if they leave the company before the vesting dates.

Future Outlook

The document does not contain specific forward-looking statements beyond the vesting schedules of the equity awards.

Industry Context

Equity compensation is a common practice in publicly traded companies to incentivize executives and align their interests with those of shareholders. The specific terms of the grants, such as vesting schedules and performance metrics, are tailored to the company's specific goals and industry practices.

Comparison to Industry Standards

• LivaNova's equity compensation practices are generally in line with industry standards for publicly traded companies.
• Companies like Medtronic and Boston Scientific also utilize a mix of time-based and performance-based equity awards to incentivize their executives.
• The vesting schedules and performance metrics used by LivaNova are similar to those used by its peers in the medical device industry.

Stakeholder Impact

• Shareholders may view the equity grants positively as they incentivize management to improve company performance.
• Employees may be motivated by the fact that executives are incentivized to improve company performance.
• The grants have no immediate impact on customers, suppliers, or creditors.

Key Dates

Keywords

LivaNova PLC, Natalia Kozmina, Chief Human Resources Officer, Form 4, restricted stock units, performance stock units, stock appreciation rights, equity compensation, insider trading