Form 4: Ontrak Director Richard A. Berman Acquires Options in Company

Richard A. Berman, a director at Ontrak, Inc., was granted 65,592 options to purchase common stock as compensation for his board service.

Summary

• Richard A. Berman, a director of Ontrak, Inc., received 65,592 options to purchase common stock.
• These options were granted as compensation for his service on the Board of Directors and as Chairman of the Audit Committee.
• The options have an exercise price of $1.85 per share.
• The options vest quarterly, with 25% vesting at the end of each quarter starting January 1, 2025, and fully vesting by December 31, 2025.
• Vesting is contingent upon Mr. Berman attending board meetings, unless excused by the Chairman of the Board.

Sentiment

Score: 7

Explanation: The document reflects a standard corporate practice of compensating a director with stock options, which is generally viewed positively as it aligns interests. There are no negative implications or surprises.

Positives

• The grant of options aligns the director's interests with those of the shareholders.
• The vesting schedule encourages continued service and engagement from the director.

Future Outlook

The document does not contain any forward-looking statements or guidance.

Management Comments

• These securities were granted to Mr. Berman for his services as a member of the Company's Board of Directors and Chairman of the Audit Committee.

Industry Context

The granting of stock options to board members is a common practice in corporate governance to incentivize and align their interests with the company's performance.

Comparison to Industry Standards

• Granting options to board members is a standard practice across many industries, particularly in technology and healthcare where Ontrak operates.
• The vesting schedule of quarterly vesting over a year is also a common practice to ensure continued engagement and contribution from board members.
• The exercise price of $1.85 is specific to Ontrak's stock and would need to be compared to other companies in the same sector to determine if it is in line with industry standards.

Stakeholder Impact

• The granting of options to a director can be seen positively by shareholders as it aligns the director's interests with the company's success.

Key Dates

Keywords

options, director, Ontrak, stock, vesting, compensation, board of directors, audit committee