Form 4: Oscar Health Executive Mario Schlosser Receives Accelerated Stock Unit Awards

Mario Schlosser, President of Technology & CTO of Oscar Health, received two grants of restricted stock units, one representing the standard annual award and another pulled forward from 2025 to incentivize retention.

Summary

• On March 10, 2024, Mario Schlosser, President of Technology & CTO at Oscar Health, received two grants of restricted stock units (RSUs).
• Each RSU represents a contingent right to receive one share of Class A common stock.
• The first grant of 172,940 RSUs will vest over a three-year period in 12 equal quarterly installments starting June 1, 2024.
• The second grant of 172,940 RSUs is the annual restricted stock unit award that Schlosser would have otherwise received for 2025, pulled forward to further incentivize and retain him.
• These RSUs will also vest over a three-year period in 12 equal quarterly installments beginning June 1, 2025.

Sentiment

Score: 7

Explanation: The document reflects a positive sentiment due to the company's investment in retaining key leadership, which is generally viewed favorably by investors.

Positives

• The accelerated vesting of stock units indicates the company's commitment to retaining key personnel like Mario Schlosser.
• The vesting schedule aligns the executive's interests with the long-term performance of the company.

Future Outlook

The grants are designed to incentivize and retain the executive, suggesting a focus on future growth and stability.

Industry Context

Stock-based compensation is a common practice in the tech industry to attract and retain top talent. Accelerating vesting schedules can be used to further incentivize key executives.

Comparison to Industry Standards

• Many tech companies, such as Google (Alphabet), Meta (Facebook), and Amazon, use restricted stock units (RSUs) as a significant part of their executive compensation packages.
• The vesting schedules, typically over 3-4 years with quarterly or annual installments, are standard practice to align executive incentives with long-term company performance.
• Pulling forward equity grants is less common but can be seen in situations where a company wants to ensure the retention of a key executive, similar to retention bonuses or special equity awards at companies like Apple or Microsoft.

Stakeholder Impact

• Shareholders may view the retention incentive positively as it aligns management's interests with long-term value creation.
• Employees may see this as a sign of stability and commitment to leadership.

Key Dates