Form 4: My Size CPO & COO Pardo Receives Equity Grant

My Size, Inc.'s Chief Product and Operating Officer, Billy Pardo, and his spouse, CEO Ronen Luzon, were granted a total of 275,000 restricted shares under the company's 2017 Equity Incentive Plan.

Summary

• Billy Pardo, Chief Product and Operating Officer of My Size, Inc., received a direct grant of 60,000 restricted shares.
• Pardo's spouse, Ronen Luzon, who is the company's Director and Chief Executive Officer, received an indirect grant of 215,000 restricted shares.
• These grants were made under the My Size, Inc. 2017 Equity Incentive Plan.
• A portion of the shares (40,000 for Pardo, 75,000 for Luzon) will vest in three equal annual installments, with 1/3 vesting on each of January 1, 2026, January 1, 2027, and January 1, 2028, subject to continued service.
• Up to 20,000 restricted shares for Pardo and up to 125,000 restricted shares for Luzon will vest upon the achievement of certain profit and business targets, subject to continued service.
• An additional 15,000 restricted shares for Luzon will vest on December 31, 2025, subject to continued service.
• Following these transactions, Billy Pardo directly beneficially owns 79,750 common shares, and indirectly beneficially owns 289,335 common shares through his spouse.

Sentiment

Score: 7

Explanation: The grants of restricted shares to key executives are generally positive for aligning management incentives with long-term shareholder value, especially with performance-based vesting. However, they also represent potential future dilution.

Positives

• The grants of restricted shares align management's interests with shareholders through long-term equity incentives.
• Performance-based vesting for up to 145,000 shares (20,000 for Pardo, 125,000 for Luzon) incentivizes the achievement of specific profit and business targets, potentially driving company growth.
• The equity grants demonstrate the company's commitment to retaining key executives, Billy Pardo and Ronen Luzon.

Negatives

• The grants represent potential future dilution for existing shareholders as these shares vest and become outstanding.
• The transaction price for the acquired shares was $0, indicating they are grants rather than purchases at market value by the executives.

Industry Context

This filing details a standard executive equity compensation event, which is a common practice across industries to incentivize and retain key management personnel. It does not provide specific insights into broader industry trends or competitive landscape beyond the company's internal compensation strategy.

Related Party Transactions

• The grant of 215,000 restricted shares to Ronen Luzon, who is the Director and Chief Executive Officer and also the spouse of the reporting person Billy Pardo, constitutes a related party transaction in the context of executive compensation.

Stakeholder Impact

• Shareholders: Potential future dilution as restricted shares vest and become outstanding. However, the grants aim to incentivize management for long-term value creation and improved company performance.
• Executives (Billy Pardo & Ronen Luzon): Increased equity stake and long-term incentive compensation, subject to continued service and achievement of performance targets.

Next Steps

• Continued service by Billy Pardo and Ronen Luzon to meet the specified vesting conditions for their restricted shares.
• Achievement of specified profit and business targets by My Size, Inc. for the performance-based vesting of up to 145,000 restricted shares.
• Future vesting events for the restricted shares are scheduled on December 31, 2025, January 1, 2026, January 1, 2027, and January 1, 2028.

Key Dates

Recommendation

This Form 4 filing details routine equity grants to key executives, aligning their interests with long-term company performance. While it introduces potential future dilution, it does not present new information that would fundamentally alter the investment thesis for My Size, Inc. Therefore, a 'hold' recommendation is appropriate, maintaining current positions while monitoring future operational and financial performance.

Keywords

My Size Inc., MYSZ, SEC Form 4, Beneficial Ownership, Restricted Stock, Equity Incentive Plan, Billy Pardo, Ronen Luzon, Executive Compensation, Stock Grant