Form 4: Select Medical Holdings Executive Chairman Rocco Ortenzio Receives 100,000 Shares of Restricted Stock

Rocco A. Ortenzio, Executive Chairman of Select Medical Holdings, was granted 100,000 shares of restricted stock on April 30, 2024, which will vest annually over three years.

Summary

• On April 30, 2024, Rocco A. Ortenzio, the Executive Chairman of Select Medical Holdings Corp, received 100,000 shares of restricted stock.
• These shares will vest in equal annual installments over three years.
• Following this transaction, Mr. Ortenzio directly owns 670,000 shares of common stock.
• He also indirectly owns a significant number of shares through various trusts and partnerships, including the Rocco A. Ortenzio Separate Exempt Descendants Trust (3,804,805 shares), the Rocco A. Ortenzio Revocable Trust (3,358,767 shares), Select Investments III, L.P. (30,601 shares), Select AP Investors, L.P. (16,182 shares), and shares held by his spouse (10,000 shares).
• Mr. Ortenzio disclaims beneficial ownership of the indirectly held securities except to the extent of his pecuniary interest.

Sentiment

Score: 6

Explanation: The document is a routine disclosure of a stock grant, which is generally neutral. It indicates continued investment in the company's leadership.

Positives

• The grant of restricted stock to the Executive Chairman aligns his interests with those of the shareholders, incentivizing long-term performance.

Future Outlook

The restricted stock grant suggests an expectation of continued service and contribution from the Executive Chairman over the next three years.

Management Comments

• The reporting person beneficially owns the reported securities indirectly, but disclaims beneficial ownership of the reported securities except to the extent of his pecuniary interest therein.

Industry Context

Grants of restricted stock are a common form of executive compensation in the healthcare industry, aligning management's interests with shareholder value creation.

Comparison to Industry Standards

• Executive compensation packages, including restricted stock grants, are common in publicly traded healthcare companies like Universal Health Services and HCA Healthcare.
• The size and vesting schedule of the grant are likely benchmarked against peer companies to attract and retain top talent.

Stakeholder Impact

• The stock grant could positively impact shareholder confidence by aligning executive interests with company performance.

Key Dates