Form 4: National Healthcare Corp. Executive Ben Anderson Flatt Sr. Reports Stock Option Grant and Restricted Share Acquisition
SEC Form 4
Senior VP & CIO of National Healthcare Corp., Ben Anderson Flatt Sr., reports the acquisition of restricted shares and stock options.
Summary
- On March 5, 2024, Ben Anderson Flatt Sr., Senior VP & CIO of National Healthcare Corp (NHC), reported acquiring 1,239 shares of common stock.
- These shares were granted as restricted shares, vesting in three equal installments annually starting January 1, 2025.
- Flatt also acquired 12,000 stock options with an exercise price of $94.10, vesting ratably over three years beginning March 5, 2025, and expiring on March 5, 2029.
- The stock options were granted under the 2020 Omnibus Equity Incentive Plan and are exempt from Section 16(b) under Rule 16b-3(d).
- Following these transactions, Flatt directly owns 10,977.1586 shares of common stock and holds options to purchase 26,934 shares.
Sentiment
Score: 7
Explanation: The sentiment is neutral to positive as it reflects standard executive compensation practices. The grant of equity aligns executive interests with shareholders, which is generally viewed favorably.
Positives
- The grant of restricted shares and stock options aligns the executive's interests with those of the shareholders.
- The vesting schedules for both the restricted shares and stock options encourage long-term commitment from the executive.
Industry Context
Executive compensation practices in the healthcare industry often include stock options and restricted shares to incentivize performance and align executive interests with shareholder value. This filing reflects a standard practice in the industry.
Comparison to Industry Standards
- Executive compensation packages, including stock options and restricted stock, are common in the healthcare industry to attract and retain talent.
- Companies like Brookdale Senior Living and HCA Healthcare also utilize similar equity-based compensation plans for their executives.
- The vesting schedules and exercise prices are generally in line with industry norms, designed to incentivize long-term performance.
Stakeholder Impact
- The grant of stock options and restricted shares could positively impact shareholders by aligning executive interests with long-term company performance.
- Employees may view the executive compensation package as a sign of the company's commitment to its leadership.
Key Dates
| Date | Description |
|---|---|
| 02/18/2023 | Date of previously granted stock options with an exercise price of $63.96, expiring on 02/18/2027. |
| 03/08/2024 | Date of previously granted stock options with an exercise price of $53.94, expiring on 03/08/2028. |
| 03/05/2024 | Date of transaction: Grant of restricted shares and stock options. |
| 03/05/2025 | First vesting date for one-third of the newly granted stock options. |
| 01/01/2025 | First vesting date for one-third of the restricted shares. |
| 03/05/2026 | Second vesting date for one-third of the newly granted stock options. |
| 01/01/2026 | Second vesting date for one-third of the restricted shares. |
| 03/05/2027 | Final vesting date for one-third of the newly granted stock options. |
| 01/01/2027 | Final vesting date for one-third of the restricted shares. |
| 03/05/2029 | Expiration date of the newly granted stock options. |
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