Form 4: PROCEPT BioRobotics Director Mary Garrett Receives Significant Equity Compensation

PROCEPT BioRobotics Corp. Director Mary Garrett was granted 1,538 restricted stock units and 2,771 stock options on June 10, 2025, as part of her compensation package.

Summary

• Mary Garrett, a Director of PROCEPT BioRobotics Corp. (PRCT), reported the acquisition of equity securities.
• On June 10, 2025, Ms. Garrett was granted 1,538 shares of Common Stock in the form of Restricted Stock Units (RSUs) at an acquisition price of $0.
• Each RSU represents a contingent right to receive one share of Common Stock and will vest in full on the earlier of the one-year anniversary of the grant date or the date of the next annual meeting following the grant date, subject to continued service.
• Following this transaction, Ms. Garrett beneficially owns 14,385 shares of Common Stock.
• Additionally, on June 10, 2025, Ms. Garrett was granted 2,771 stock options with an exercise price of $64.23 per share.
• These stock options will vest in full on the earlier of the one-year anniversary of the grant date or the date of the next annual meeting following the grant date, subject to continued service.
• The stock options have an expiration date of June 9, 2035.
• Following this transaction, Ms. Garrett beneficially owns 2,771 derivative securities (stock options).

Sentiment

Score: 7

Explanation: The document reports a standard equity compensation grant to a director, which is generally viewed positively as it aligns the director's interests with shareholders. It does not contain any negative financial or operational news.

Positives

• The grant of restricted stock units and stock options to a director aligns their interests with those of shareholders, incentivizing long-term performance and value creation.
• Equity compensation is a standard practice for attracting and retaining qualified board members in publicly traded companies.

Future Outlook

The vesting schedules for both the restricted stock units and stock options are contingent upon continued service, indicating an expectation of Mary Garrett's ongoing role as a Director for at least one year or until the next annual meeting.

Industry Context

The granting of equity compensation, such as restricted stock units and stock options, to non-employee directors is a common and widely accepted practice across various industries, including medical technology, to align the interests of the board with long-term shareholder value.

Comparison to Industry Standards

• The structure of equity grants with vesting conditions tied to continued service is a standard compensation mechanism for directors in publicly traded companies, consistent with global benchmarks for corporate governance and executive/director incentives.
• While specific grant sizes vary by company size, industry, and individual director responsibilities, the use of RSUs and stock options is a prevalent method of non-cash compensation across the healthcare and robotics sectors, similar to practices seen in companies like Intuitive Surgical (ISRG) or Stryker (SYK) for their board members.

Corporate Governance

Related Party Transactions

• The transaction involves the issuance of equity compensation by PROCEPT BioRobotics Corp. to Mary Garrett, a Director, which constitutes a related party transaction. This is a standard and disclosed form of compensation.

Stakeholder Impact

• Shareholders: The equity grants align the director's financial incentives with shareholder interests, potentially leading to better long-term performance and governance.
• Employees: No direct impact on employees is indicated by this filing, though it reflects standard compensation practices for leadership.

Next Steps

• The restricted stock units and stock options will vest in full on the earlier of the one-year anniversary of the grant date (June 10, 2026) or the date of the next annual meeting following the grant date, subject to Mary Garrett's continued service.

Key Dates

Recommendation

Keywords

PROCEPT BioRobotics, PRCT, SEC Form 4, Insider Transaction, Equity Grant, Restricted Stock Units, RSUs, Stock Options, Director Compensation, Corporate Governance