Form 4: Neuronetics Executive Receives Stock and Performance-Based Stock Unit Awards

William Andrew Macan, EVP, GC, CCO and CS of Neuronetics, Inc., was granted restricted stock units and performance-based restricted stock units on February 24, 2025.

Summary

• William Andrew Macan, an executive at Neuronetics, Inc., received an award of 157,500 restricted stock units (RSUs) and 78,750 performance restricted stock units (PRSUs) on February 24, 2025.
• The RSUs vest in three equal annual installments beginning February 24, 2026, contingent upon continuous service.
• The PRSUs vest in three tranches on December 31, 2025, 2026, and 2027, subject to performance metrics related to the company's year-end cash balance and continuous service.
• Following these transactions, Macan directly owns 527,182 shares of Neuronetics common stock.
• Each RSU and PRSU represents a contingent right to receive one share of Neuronetics common stock.

Sentiment

Score: 6

Explanation: The document itself is neutral, simply reporting a transaction. The sentiment is slightly positive as it indicates continued investment in the company by an executive and alignment of interests.

Positives

• The grant of RSUs and PRSUs aligns executive compensation with company performance and shareholder value.
• The vesting schedules incentivize long-term service and achievement of performance goals.

Risks

• The value of the RSUs and PRSUs is dependent on the future stock price of Neuronetics, Inc.
• The PRSUs are subject to performance metrics, and failure to meet these metrics could result in forfeiture of the award.

Future Outlook

The vesting of the RSUs and PRSUs is contingent upon the reporting person's continuous service and, in the case of PRSUs, the achievement of specific performance metrics related to the company's year-end cash balance.

Industry Context

Stock-based compensation is a common practice in the medical device industry to attract, retain, and incentivize key executives. Performance-based awards are often used to align executive compensation with the achievement of strategic goals.

Comparison to Industry Standards

• Stock-based compensation is a common practice among publicly traded companies, particularly in the technology and healthcare sectors.
• Companies like Medtronic and Boston Scientific also utilize a mix of stock options, restricted stock units, and performance-based awards to incentivize their executives.
• The specific terms of these awards, such as vesting schedules and performance metrics, vary depending on the company's size, stage of development, and strategic priorities.

Stakeholder Impact

• The stock grants could have a positive impact on shareholder value if the executive's performance leads to increased company profitability and stock price appreciation.
• Employees may view the stock grants as a positive sign of the company's commitment to its leadership team.

Key Dates