Form 4: NeueHealth Executive Jeffrey Scherman Reports Acquisition of Restricted Stock Units
SEC Form 4 Filing
Jeffrey Scherman, Chief Accounting Officer of NeueHealth, Inc., reports the acquisition of restricted stock units following shareholder approval of an amendment to the company's incentive plan.
Summary
- Jeffrey Scherman, Chief Accounting Officer of NeueHealth, Inc., filed a Form 4 on May 6, 2024, reporting transactions related to the company's stock.
- On May 2, 2024, Scherman acquired 16,500 restricted stock units (RSUs) as part of the company's annual equity grants, approved on March 11, 2024, and subject to shareholder approval of an amendment to the Issuer's Amended and Restated 2021 Omnibus Incentive Plan, which approval was obtained on May 2, 2024.
- These RSUs vest in three equal annual installments beginning on March 11, 2025.
- Additionally, Scherman acquired 50,000 RSUs on May 2, 2024, which were approved on October 11, 2023, and also subject to the same shareholder approval.
- These RSUs vest 100% on October 11, 2026.
- Following these transactions, Scherman directly owns 66,500 derivative securities in the form of restricted stock units.
Sentiment
Score: 7
Explanation: The document reflects a routine executive compensation practice, indicating stability and alignment of interests. The sentiment is neutral to slightly positive.
Positives
- The acquisition of restricted stock units by a key executive signals confidence in the company's future performance.
- The vesting schedules for the RSUs incentivize long-term commitment from the executive.
Future Outlook
The vesting schedules of the restricted stock units suggest an expectation of continued employment and contribution from the executive over the next several years.
Industry Context
Equity grants are a common practice in the healthcare industry to incentivize and retain key executives. The vesting schedules are designed to align the executive's interests with the long-term success of the company.
Comparison to Industry Standards
- Equity compensation is a standard practice among publicly traded companies, including NeueHealth's competitors in the healthcare technology and services sector.
- Companies like Oak Street Health (before being acquired by CVS Health) and Alignment Healthcare also utilized restricted stock units as part of their executive compensation packages.
- The vesting schedules observed in NeueHealth's grants are typical, with multi-year vesting periods to encourage long-term commitment.
Stakeholder Impact
- Shareholders may view the equity grants as a positive sign of incentivizing management to drive long-term value.
- Employees may see the grants as a reflection of the company's commitment to rewarding performance.
Key Dates
| Date | Description |
|---|---|
| March 11, 2024 | Approval date of 16,500 RSU grant by the Issuer's Compensation and Human Capital Committee. |
| October 11, 2023 | Approval date of 50,000 RSU grant by the Issuer's Compensation and Human Capital Committee. |
| May 2, 2024 | Date of transaction and shareholder approval of amendment to the Issuer's Amended and Restated 2021 Omnibus Incentive Plan. |
| March 11, 2025 | Start date for vesting of 16,500 RSUs in three equal annual installments. |
| October 11, 2026 | Date of 100% vesting for 50,000 RSUs. |
| May 06, 2024 | Date of Form 4 filing. |
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