Form 4: Varex Imaging CFO Acquires Performance Stock Units

Varex Imaging's Chief Financial Officer, Shubham Maheshwari, acquired 2,839 performance stock units (PSUs) on December 16, 2024, based on the achievement of performance criteria.

Summary

• Shubham Maheshwari, the Chief Financial Officer of Varex Imaging Corp, acquired 2,839 performance stock units (PSUs) on December 16, 2024.
• These PSUs were earned based on the achievement of certain performance criteria related to a grant made on December 10, 2023.
• Each PSU represents a contingent right to receive one share of Varex Imaging common stock.
• The vesting of these PSUs is contingent upon the Compensation Committee's certification and approval after the completion of Fiscal Year 2026, and the reporting person's continued employment through the vesting date.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, indicating a positive alignment of interests between management and shareholders. There are no negative implications.

Positives

• The acquisition of performance stock units by the CFO suggests confidence in the company's future performance.
• The vesting of the PSUs is tied to performance criteria, aligning management's interests with those of shareholders.

Risks

• The vesting of the PSUs is contingent on the CFO's continued employment, which introduces a risk of forfeiture if employment is terminated before the vesting date.
• The final number of PSUs earned is subject to the Compensation Committee's approval after Fiscal Year 2026, which introduces some uncertainty.

Future Outlook

The vesting of the PSUs is dependent on the achievement of performance criteria and the CFO's continued employment through the vesting date after Fiscal Year 2026.

Industry Context

This type of equity compensation is common in publicly traded companies to incentivize executives and align their interests with shareholders.

Comparison to Industry Standards

• Performance-based equity awards are a standard practice among publicly traded companies, including those in the medical imaging and technology sectors.
• Companies like GE Healthcare, Siemens Healthineers, and Philips also utilize similar compensation structures to motivate their executive teams.
• The specific performance criteria and vesting schedules vary across companies, but the general principle of linking executive compensation to company performance is consistent.

Stakeholder Impact

• Shareholders may view this as a positive sign, as it aligns management's interests with the company's performance.
• Employees may see this as a positive sign of the company's commitment to its leadership.

Next Steps

• The Compensation Committee will certify and approve the total number of PSUs earned after the completion of Fiscal Year 2026.
• The PSUs will vest subject to the reporting person's continued employment through the vesting date.

Key Dates

Keywords

Performance Stock Units, PSUs, Varex Imaging, Shubham Maheshwari, CFO, Equity Compensation, Stock Options, SEC Form 4