Form 4: Ontrak, Inc. Executive Acquires 7 Million Options After Stockholder Approval

Brandon H. LaVerne, Chief Executive Officer and Chief Operating Officer of Ontrak, Inc., reports acquisition of 7,000,000 options following stockholder approval of the stock incentive plan.

Summary

• Brandon H. LaVerne, the CEO and COO of Ontrak, Inc., filed a Form 4 on September 12, 2024, reporting a transaction.
• On September 10, 2024, LaVerne acquired 7,000,000 options to purchase Ontrak, Inc. common stock at an exercise price of $0.2227.
• The options were granted on June 21, 2024, by the compensation committee, contingent on stockholder approval of the stock incentive plan, which was obtained on September 10, 2024.
• 50% of the options vest one year from the grant date (June 21, 2025), with the remaining shares vesting in six equal installments every six months thereafter over the next three years, contingent on continuous service.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The option grant aligns management with shareholders, but it's a standard practice.

Positives

• The grant of options to the CEO and COO aligns management's interests with those of the stockholders.
• The vesting schedule incentivizes long-term commitment and performance from the executive.

Future Outlook

The document does not contain specific forward-looking statements beyond the vesting schedule of the options.

Industry Context

Granting stock options to executives is a common practice in the industry to incentivize performance and align management's interests with those of shareholders.

Comparison to Industry Standards

• Stock option grants are a standard component of executive compensation packages across various industries, including technology and healthcare, where Ontrak operates.
• Companies like Teladoc Health and Livongo (prior to its acquisition by Teladoc) have used similar equity-based compensation to incentivize their leadership teams.
• The vesting schedule of these options, with a mix of time-based and performance-based criteria, is also consistent with industry norms.

Stakeholder Impact

• Shareholders may view the option grant positively as it incentivizes management to improve company performance.
• Employees may see the grant as a sign of confidence in the company's future.

Key Dates

Keywords

Ontrak, Inc., options, Form 4, stock incentive plan, Brandon H. LaVerne, CEO, COO, stockholder approval, vesting