Form 4: Paragon 28, Inc. Director Albert DaCosta Reports Acquisition and Disposal of Common Stock and Restricted Stock Units

Director Albert DaCosta reports changes in beneficial ownership of Paragon 28, Inc. stock, including acquisition of restricted stock units and disposal of common stock.

Summary

• On March 8, 2024, Albert DaCosta, a director, 10% owner, and the President & CEO of Paragon 28, Inc., reported transactions involving the company's common stock.
• DaCosta acquired 166,924 restricted stock units (RSUs) at $0, which will vest 25% annually starting March 8, 2024, contingent upon continued service.
• He also disposed of 25,000 shares of common stock held indirectly by his spouse.
• Following these transactions, DaCosta directly owns 643,336 shares, including 398,388 RSUs.
• He also indirectly owns 5,311,110 shares through The DaCosta Family Trust and 5,000,000 shares through DaCosta Investment Company, LLC.

Sentiment

Score: 5

Explanation: The document is a standard regulatory filing, so the sentiment is neutral. It simply reports transactions without expressing any positive or negative outlook.

Future Outlook

The acquired RSUs will vest over the next four years, subject to DaCosta's continued service to the Issuer.

Industry Context

This filing is a routine disclosure of insider transactions, providing transparency to investors regarding the actions of company executives and directors. It is standard practice for company insiders to receive stock-based compensation, such as RSUs, as part of their overall compensation package.

Comparison to Industry Standards

• Stock ownership and RSU grants are common forms of compensation for executives in publicly traded companies, aligning their interests with those of shareholders.
• The vesting schedule of 25% per year is a typical arrangement for RSUs, encouraging long-term commitment from the executive.
• Comparable companies in the medical device industry, such as Stryker or Zimmer Biomet, also utilize stock-based compensation for their executives.

Stakeholder Impact

• The transactions may have a minor impact on shareholders by slightly diluting the outstanding shares as RSUs vest.
• The vesting of RSUs incentivizes the CEO to remain with the company, which could benefit employees and other stakeholders.

Key Dates