Form 4: Ontrak Director Richard A. Berman Acquires Options for 2,777,778 Shares

Richard A. Berman, a director of Ontrak, Inc., was granted options to purchase 2,777,778 shares of common stock on September 10, 2024.

Summary

• On September 10, 2024, Richard A. Berman, a director of Ontrak, Inc., acquired options to purchase 2,777,778 shares of Ontrak common stock.
• The exercise price of the options is $0.2062 per share.
• The options were granted under the company's stock incentive plan, which was approved by the board of directors on June 30, 2024, and by stockholders on September 10, 2024.
• The options vest in three equal installments on the first, second, and third anniversaries of the grant date (June 30, 2024), contingent upon Berman's continued service to Ontrak.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, which is generally viewed neutrally to positively as it aligns management and shareholder interests. The large number of shares could be seen as a positive incentive.

Positives

• The grant of options to a director aligns their interests with those of shareholders.
• The vesting schedule encourages long-term commitment from the director.

Future Outlook

The director's options vest over the next three years, incentivizing continued service and alignment with shareholder interests.

Industry Context

Option grants are a common form of executive compensation in the technology and healthcare industries, aligning management's interests with those of shareholders and incentivizing long-term value creation.

Comparison to Industry Standards

• Option grants are a standard component of executive compensation packages in publicly traded companies, particularly in growth-oriented sectors like technology and healthcare.
• The size of the grant (2,777,778 shares) should be evaluated in the context of Ontrak's overall capitalization and the director's role and responsibilities.
• Vesting schedules of three years are typical for option grants, encouraging long-term commitment.

Stakeholder Impact

• The option grant could potentially impact shareholders by diluting ownership if the options are exercised.
• The option grant incentivizes the director to work towards increasing shareholder value.

Key Dates

Keywords

Ontrak, Richard A. Berman, options, stock incentive plan, director, OTRK, beneficial ownership