Form 4: Neuronetics Executive Receives Performance-Based Stock Units

Stephen Furlong, EVP, CFO and Treasurer of Neuronetics, Inc., was granted 150,000 performance-based restricted stock units (PRSUs) that vest upon achieving cash flow breakeven targets.

Summary

• Stephen Furlong, the EVP, CFO and Treasurer of Neuronetics, Inc., received 150,000 performance restricted stock units (PRSUs) on December 10, 2024.
• These PRSUs will vest on December 31, 2025, contingent upon the company achieving specific cash flow breakeven targets.
• 25% of the award vests if Neuronetics achieves cash flow breakeven for the quarter ending June 30, 2025.
• An additional 50% vests if the company achieves cash flow breakeven for the quarter ending September 30, 2025.
• The final 25% vests if the company achieves cash flow breakeven for the quarter ending December 31, 2025.
• Each PRSU represents the right to receive one share of Neuronetics' common stock.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, which is generally positive as it aligns executive interests with company performance. The sentiment is neutral to positive.

Positives

• The performance-based vesting of the stock units aligns executive compensation with the company's financial performance goals.
• The vesting schedule incentivizes the executive to achieve cash flow breakeven across multiple quarters.

Risks

• The vesting of the stock units is contingent on achieving cash flow breakeven, which may not be guaranteed.
• Failure to meet the cash flow breakeven targets will result in the executive not receiving the full award.

Future Outlook

The vesting of the PRSUs is dependent on the company achieving cash flow breakeven in the specified quarters of 2025.

Industry Context

The use of performance-based stock units is a common practice in the industry to align executive compensation with company performance and shareholder value.

Comparison to Industry Standards

• Many companies in the medical device and technology sectors use performance-based equity awards to incentivize executives.
• The specific cash flow breakeven targets are unique to Neuronetics, but the structure of the award is consistent with industry norms.
• Companies like InMode and Shockwave Medical also use a mix of stock options and restricted stock units with performance-based vesting conditions.

Stakeholder Impact

• Shareholders may view this as positive as it aligns executive compensation with company performance.
• Employees may see this as a positive sign of the company's commitment to achieving its financial goals.

Next Steps

• Neuronetics needs to achieve cash flow breakeven in the specified quarters of 2025 for the PRSUs to vest.
• The executive will need to remain employed through the vesting date to receive the award.

Key Dates

Keywords

performance restricted stock units, PRSU, stock options, executive compensation, cash flow breakeven, Neuronetics, Stephen Furlong