Form 4: PAVmed CFO McGrath Receives 150,000 Restricted Shares

PAVmed Inc.'s President and CFO, Dennis M. McGrath, was granted 150,000 shares of restricted common stock, vesting in May 2028, as part of the company's long-term incentive plan.

Summary

• Dennis M. McGrath, President and CFO of PAVmed Inc. (PAVM), acquired 150,000 shares of common stock.
• The acquisition occurred on September 30, 2025, at a price of $0 per share.
• These shares represent restricted stock granted under the issuer's Sixth Amended and Restated 2014 Long-Term Incentive Equity Plan.
• The restricted stock has a single vesting date of May 20, 2028.
• The grant is subject to forfeiture if the requisite service period is not completed.
• Following this transaction, Mr. McGrath beneficially owns 200,834 shares of common stock.
• The transaction was made pursuant to a Rule 10b5-1(c) plan.

Sentiment

Score: 7

Explanation: The grant of restricted stock to a key executive is a positive for aligning management incentives with long-term shareholder value, though it is a routine compensation event and not indicative of new operational performance.

Positives

• The grant of 150,000 restricted shares to a key executive, Dennis M. McGrath, aligns management's interests with long-term shareholder value.
• The grant is part of a long-term incentive plan, indicating a commitment to executive retention and performance.
• The use of a Rule 10b5-1(c) plan demonstrates a pre-arranged, compliant transaction.

Negatives

• The shares are restricted and subject to forfeiture if the service period is not completed, meaning the executive does not have immediate full ownership.
• The vesting date is May 20, 2028, indicating a long lock-up period before the shares are fully owned.

Risks

• The restricted stock is subject to forfeiture if the requisite service period is not completed, meaning Mr. McGrath may not ultimately receive all 150,000 shares.

Future Outlook

The grant of restricted stock with a vesting date in May 2028 indicates a long-term incentive for the President and CFO, Dennis M. McGrath, aligning his future compensation with the company's performance over several years.

Industry Context

Equity grants, particularly restricted stock, are a common component of executive compensation packages across various industries, including healthcare and biotechnology, to incentivize long-term performance and align management interests with shareholder value. The use of a 10b5-1 plan is also a standard practice for insiders to pre-arrange stock transactions in compliance with insider trading rules.

Comparison to Industry Standards

• The grant of restricted stock to a President and CFO is a standard practice for executive compensation, comparable to similar incentive plans at companies like Medtronic (MDT) or Boston Scientific (BSX) which frequently use equity awards to retain and motivate key personnel.
• The vesting schedule, a single date in approximately 2.5 years from the transaction date (09/30/2025 to 05/20/2028), is within typical ranges for long-term incentive grants, often seen in biotech firms where long development cycles necessitate extended retention incentives.
• The $0 transaction price is standard for restricted stock grants, as these are compensation rather than purchases.

Corporate Governance

Stakeholder Impact

• Shareholders: Potential positive impact through improved alignment of executive interests with long-term company performance.
• Employees: May signal stability in executive leadership and a commitment to long-term incentive programs.

Next Steps

• Dennis M. McGrath must complete the requisite service period for the restricted stock to vest on May 20, 2028.

Key Dates

Recommendation

This Form 4 filing reports a routine executive compensation event (restricted stock grant) and does not contain new material information regarding the company's operational performance, financial health, or strategic direction that would warrant a change in investment recommendation. It primarily serves to disclose insider ownership changes.

Keywords

PAVmed, PAVM, Dennis McGrath, President, CFO, restricted stock, equity grant, executive compensation, insider transaction, Form 4, 10b5-1 plan, long-term incentive