Form 4: Varex Imaging Executive Awarded Performance Stock Units

Mark S. Jonaitis, SVP and GM of X-Ray Sources at Varex Imaging Corp, received 1,613 performance stock units (PSUs) after achieving certain performance criteria.

Summary

• Mark S. Jonaitis, a Senior Vice President and General Manager at Varex Imaging Corp, has been awarded 1,613 performance stock units (PSUs).
• These PSUs were granted on December 10, 2023, and their vesting is contingent upon the achievement of specific performance criteria.
• The 1,613 PSUs were earned as a result of the achievement of these performance criteria.
• The final number of PSUs earned will be certified and approved by the Compensation Committee after the completion of Fiscal Year 2026.
• The PSUs will vest provided Mr. Jonaitis remains employed through the vesting date.

Sentiment

Score: 7

Explanation: The document reflects a positive event of executive compensation tied to performance, which is generally viewed favorably. However, it is not a major event that would significantly impact the company's outlook.

Positives

• The award of PSUs indicates that performance goals were met, which is a positive sign for the company.
• The vesting of PSUs is tied to continued employment, which may encourage retention of key personnel.

Risks

• The vesting of the PSUs is contingent on continued employment, which could be a risk if Mr. Jonaitis leaves the company before the vesting date.
• The final number of PSUs is subject to approval by the Compensation Committee, which introduces a degree of uncertainty.

Future Outlook

The PSUs will vest after the completion of Fiscal Year 2026, subject to the Compensation Committee's approval and continued employment.

Industry Context

This type of equity-based compensation is common in the technology and medical device industries to align executive interests with company performance and shareholder value.

Comparison to Industry Standards

• Performance-based equity awards are a standard practice among publicly traded companies, particularly in the technology and medical device sectors, to incentivize executives.
• Companies like GE Healthcare, Siemens Healthineers, and Philips also utilize similar compensation structures to align executive performance with company goals.
• The specific performance criteria for these PSUs would need to be compared to industry benchmarks to fully assess the competitiveness of this award.

Stakeholder Impact

• Shareholders may view this as a positive sign that executive compensation is tied to performance.
• Employees may see this as a positive sign of the company's commitment to rewarding performance.

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 Mr. Jonaitis's continued employment through the vesting date.

Key Dates

Keywords

Performance Stock Units, PSUs, Varex Imaging, Executive Compensation, Stock Awards, Mark S. Jonaitis, Vesting, Compensation Committee