Form 4: SelectQuote COO William Thomas Grant III Awarded Restricted Stock Units

SelectQuote's Chief Operating Officer, William Thomas Grant III, received a grant of restricted stock units and price-vested restricted stock units on October 28, 2024.

Summary

• William Thomas Grant III, the Chief Operating Officer of SelectQuote, Inc., was granted restricted stock units (RSUs) and price-vested restricted stock units (PVUs) on October 28, 2024.
• The RSUs and PVUs were granted pursuant to the company's 2020 Omnibus Incentive Plan.
• A total of 319,489 RSUs were granted, which vest ratably in three annual installments starting August 1, 2025, contingent upon continued employment.
• An additional 319,489 PVUs were granted, also vesting ratably from August 1, 2025, subject to continued employment and the company's stock reaching certain price targets.
• One-third of the PVUs will vest if the 60-day average closing price of SelectQuote's common stock exceeds $3.13, $6.00, and $9.00 during the five-year performance period.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, suggesting stability and alignment of interests. The sentiment is neutral to slightly positive.

Positives

• The grant of RSUs and PVUs aligns the COO's interests with those of the shareholders, incentivizing him to improve the company's performance and stock price.
• The vesting schedules encourage long-term commitment from the COO.

Risks

• The vesting of PVUs is contingent on the company's stock price reaching certain targets, which may not be achieved.
• The value of the RSUs and PVUs is subject to the volatility of the company's stock price.

Future Outlook

The document outlines future vesting dates for the granted RSUs and PVUs, contingent on continued employment and, in the case of PVUs, the company's stock price performance.

Industry Context

Equity compensation is a common practice in the industry to attract and retain key executives and align their interests with those of the shareholders. The specific terms of the grant, such as vesting schedules and performance targets, are tailored to the company's specific circumstances and goals.

Comparison to Industry Standards

• Equity compensation packages for COOs in publicly traded companies typically include a mix of stock options, restricted stock units, and performance-based awards.
• Vesting schedules often range from three to five years, with performance-based awards tied to specific financial or operational metrics.
• Companies like eHealth and GoHealth, which operate in similar sectors, also utilize equity compensation to incentivize their executives.

Stakeholder Impact

• Shareholders may view the equity grants positively as they align management's interests with the company's long-term success.
• Employees may be motivated by the potential for increased company value and the possibility of similar incentive programs in the future.

Key Dates