Form 4: LiveOne Director Bridget Baker Awarded 60,510 Restricted Stock Units

Director Bridget Baker receives 60,510 Restricted Stock Units (RSUs) as director fees for service on LiveOne's board, vesting on October 31, 2024, subject to continued service.

Summary

• Bridget Baker, a director of LiveOne, Inc., was granted 60,510 Restricted Stock Units (RSUs) on September 10, 2024.
• These RSUs are compensation for her service on the Issuer's board of directors from October 1, 2023, to September 30, 2024.
• The RSUs will vest on October 31, 2024, contingent upon her continued service on the board.
• Each RSU represents a contingent right to receive one share of LiveOne's common stock or its cash value.
• The form of payout (cash and/or stock) will be determined by the Board in accordance with the Issuer's 2016 Equity Incentive Plan.
• Baker has the option to defer the settlement of the RSUs until she is no longer serving on the Board or up to five years from the vesting date.

Sentiment

Score: 7

Explanation: The document reflects a standard compensation practice, indicating stability and alignment of interests. The sentiment is neutral to positive.

Positives

• The grant of RSUs aligns the director's interests with those of the shareholders, incentivizing continued service and contribution to the company's success.
• The vesting date of October 31, 2024, provides a clear timeline for the director to earn the compensation.
• The option to defer settlement of the RSUs provides flexibility for the director in managing her personal finances and tax obligations.

Risks

• The value of the RSUs is dependent on the future performance of LiveOne's stock price, which is subject to market fluctuations and company-specific risks.
• The director must remain on the board until the vesting date to receive the RSUs, creating a potential risk of forfeiture if she leaves the board before then.
• The Board has discretion over the form of payout (cash and/or stock), which could impact the actual value received by the director.

Future Outlook

The director's continued service on the board is expected until at least the vesting date of the RSUs on October 31, 2024.

Industry Context

Granting stock-based compensation to directors is a common practice in publicly traded companies to align their interests with shareholders and incentivize long-term value creation.

Comparison to Industry Standards

• Stock grants to board members are a common practice across the industry.
• The size of the grant is likely benchmarked against similar companies in the media and entertainment sector, considering factors like market capitalization, board size, and director responsibilities.
• Companies like Spotify, Sirius XM, and iHeartMedia also utilize equity-based compensation for their board members.

Stakeholder Impact

• Shareholders may view the grant of RSUs positively as it aligns the director's interests with their own.
• Employees may see the grant as a sign of the company's commitment to its leadership team.
• The grant has no direct impact on customers, suppliers, or creditors.

Next Steps

• The director must continue to serve on the board until the vesting date of October 31, 2024, to receive the RSUs.
• The Board will determine the form of payout (cash and/or stock) of the RSUs.
• The director will decide whether to defer the settlement of the RSUs.

Key Dates