Form 4: Vivani Medical CFO Granted Stock Options and Restricted Stock Units

Brigid Makes, CFO of Vivani Medical, received stock options and restricted stock units (RSUs) as part of her compensation.

Summary

• Brigid Makes, the Chief Financial Officer of Vivani Medical, Inc., was granted stock options and restricted stock units (RSUs).
• The stock options are for 75,000 shares with an exercise price of $1.81, vesting 25% after one year and then monthly over the following 36 months, expiring on 05/09/2034.
• She also received 37,500 performance-based RSUs that vest in three stages based on the stock price reaching $3.15 for three consecutive trading days, with subsequent vesting milestones one and two years after the initial price target is met.
• A Limited Power of Attorney was executed on 12/6/2023, appointing Adam Mendelsohn, Judy Wong, and Brigid Makes as attorneys-in-fact to handle SEC filings related to her position.
• Judy Wong, as Attorney-in-fact, signed the form on 05/14/2024.

Sentiment

Score: 7

Explanation: The document reflects standard executive compensation practices, which are generally viewed positively as they align management's interests with shareholders. The performance-based RSUs add a further positive element.

Positives

• The granting of stock options and RSUs aligns the CFO's interests with those of the shareholders, incentivizing her to improve the company's performance.
• The performance-based vesting of the RSUs encourages efforts to increase the company's stock price.

Risks

• The RSUs will expire if the stock price does not reach $3.15 within four years from the grant date, potentially demotivating the CFO if the target seems unattainable.
• The value of the stock options and RSUs is dependent on the future performance of Vivani Medical's stock, which is subject to market risks.

Future Outlook

The document does not contain specific forward-looking statements about the company's overall financial performance or future prospects, but the vesting of RSUs is tied to the company's stock price performance.

Industry Context

Granting stock options and RSUs to executives is a common practice in the biotech industry to attract and retain talent, and to align their interests with those of shareholders. The specific terms of the grants, such as vesting schedules and performance targets, vary from company to company.

Comparison to Industry Standards

• Stock option and RSU grants are standard compensation components for executives in publicly traded companies, particularly in the biotech sector.
• Vesting schedules and performance-based conditions are common features designed to incentivize long-term value creation.
• Comparable companies like Amgen, Gilead Sciences, and Biogen also utilize stock options and RSUs as part of their executive compensation packages, with specific terms varying based on company size, performance, and industry benchmarks.

Stakeholder Impact

• Shareholders may view the granting of stock options and RSUs positively, as it incentivizes the CFO to improve the company's performance and increase shareholder value.
• Employees may be motivated by the potential for the company's stock price to increase, which could lead to broader benefits.

Key Dates