Form 4: PROCEPT BioRobotics CEO Granted Significant Equity Awards

PROCEPT BioRobotics CEO Larry L. Wood received substantial equity awards, including 182,392 restricted stock units and options for 319,618 shares, alongside a forfeiture of 2,765 unvested RSUs.

Summary

• Larry L. Wood, President and CEO of PROCEPT BioRobotics Corp, was granted 182,392 Restricted Stock Units (RSUs) on September 2, 2025, with a grant price of $0.
• Each RSU represents a contingent right to receive one share of Common Stock.
• One-quarter of these RSUs will vest on September 2, 2026, with one-twelfth of the remaining RSUs vesting quarterly thereafter, contingent on continued service.
• Wood also received Stock Options to purchase 319,618 shares of Common Stock on September 2, 2025, with an exercise price of $39.57 per share.
• One-quarter of the shares subject to the Stock Option will vest on September 2, 2026, and the remainder will vest monthly thereafter at a rate of 1/48th of the original number of shares, subject to continued service.
• The Stock Options have an expiration date of September 1, 2036.
• The ending balance of beneficially owned non-derivative securities was adjusted to 185,595 shares, reflecting the forfeiture of 2,765 unvested RSUs previously granted in April 2024 and June 2025.
• Following these transactions, Wood beneficially owns 185,595 shares of Common Stock and Stock Options for 319,618 shares.

Sentiment

Score: 7

Explanation: The sentiment is positive as significant equity grants align the CEO's interests with long-term shareholder value, indicating confidence in future performance and providing strong incentives for continued leadership. The minor forfeiture does not significantly detract from the overall positive signal of the new grants.

Positives

• The significant equity grants to the President and CEO, Larry L. Wood, align his interests with long-term shareholder value.
• The grants serve as a strong incentive for management to drive company performance and growth over several years due to the vesting schedules.

Negatives

• Larry L. Wood forfeited 2,765 unvested RSUs, though this is a minor amount compared to the new grants received.

Risks

• The value of the granted RSUs and Stock Options is subject to the future market price fluctuations of PROCEPT BioRobotics Corp's common stock.
• Vesting of both RSUs and Stock Options is contingent upon Larry L. Wood's continued service as a service provider to the company, posing a risk if his employment ceases.
• The Stock Options' value is dependent on the stock price exceeding the exercise price of $39.57 per share.

Future Outlook

The equity awards are structured with multi-year vesting schedules, indicating an expectation for Larry L. Wood's continued leadership and service to PROCEPT BioRobotics Corp through at least September 2026 and beyond, aligning his long-term incentives with the company's future performance.

Industry Context

This filing reflects standard executive compensation practices within the medical device and robotics industry, where equity awards are commonly used to attract, retain, and incentivize key leadership by aligning their financial interests with the company's long-term success and shareholder returns.

Related Party Transactions

• Grant of 182,392 Restricted Stock Units to Larry L. Wood, President and CEO.
• Grant of Stock Options for 319,618 shares to Larry L. Wood, President and CEO.
• Forfeiture of 2,765 unvested RSUs by Larry L. Wood.

Stakeholder Impact

• Shareholders: The equity grants are designed to align the CEO's financial incentives with the company's long-term performance, potentially benefiting shareholders through increased stock value.
• Employees: The grants to the CEO may signal stability in leadership and a long-term strategic vision for the company.
• Management: The awards provide significant long-term compensation and incentives for the CEO to drive company growth and profitability.

Next Steps

• Larry L. Wood's continued service to PROCEPT BioRobotics Corp to meet the vesting conditions for the RSUs and Stock Options.
• The vesting of one-quarter of the RSUs and Stock Options on September 2, 2026, followed by subsequent quarterly and monthly vesting schedules.

Key Dates

Keywords

PROCEPT BioRobotics, PRCT, Form 4, Insider Transaction, Equity Award, Restricted Stock Units, Stock Options, CEO Compensation, Executive Compensation, Corporate Governance