Form 4: Varex Imaging Corp Executive Acquires Performance Stock Units

Kimberley E. Honeysett, SVP and CLO of Varex Imaging Corp, acquired 1,742 performance stock units (PSUs) on December 16, 2024, which will vest subject to continued employment and performance criteria.

Summary

• Kimberley E. Honeysett, a Senior Vice President and Chief Legal Officer at Varex Imaging Corp, has reported a transaction involving performance stock units.
• On December 16, 2024, Ms. Honeysett acquired 1,742 performance stock units (PSUs).
• These PSUs represent a contingent right to receive one share of Varex Imaging common stock each, subject to the achievement of certain performance criteria.
• The PSUs were granted on December 10, 2023, and the reported transaction reflects the number of PSUs earned based on the achievement of performance criteria.
• The vesting of these PSUs is contingent on Ms. Honeysett's continued employment through the vesting date, which will occur after the completion of Fiscal Year 2026, following certification and approval by the Compensation Committee.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, indicating a positive alignment of interests between management and shareholders. The vesting of PSUs based on performance is a positive sign.

Positives

• The acquisition of performance stock units by a key executive suggests confidence in the company's future performance.
• The vesting of PSUs is tied to performance criteria, aligning executive compensation with company goals.

Risks

• The vesting of the PSUs is contingent on continued employment, which could be a risk if Ms. Honeysett were to leave the company before the vesting date.
• The actual number of PSUs that will vest is subject to the Compensation Committee's certification and approval after Fiscal Year 2026.

Future Outlook

The vesting of the PSUs is contingent on continued employment through the vesting date after Fiscal Year 2026, and the final number of PSUs earned will be determined by the Compensation Committee.

Industry Context

This type of equity-based compensation is common in publicly traded companies to align executive interests with shareholder value and long-term company performance.

Comparison to Industry Standards

• Performance-based equity awards are a standard practice in the technology and medical device industries, where Varex Imaging operates.
• Companies like GE Healthcare and Siemens Healthineers also use similar compensation structures to incentivize their executives.
• The specific performance criteria for the PSUs are not detailed in this document, making a direct comparison difficult, but the general structure is consistent with industry norms.

Stakeholder Impact

• Shareholders may view this as a positive sign, as it aligns executive compensation with company 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 Corp, Executive Compensation, Stock Options, Kimberley E. Honeysett, SEC Form 4