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

Truc Le, Chief Operations Officer of Vivani Medical, receives stock options and restricted stock units, as detailed in a recent SEC filing.

Summary

• Truc Le, the Chief Operations Officer of Vivani Medical, was granted stock options and restricted stock units (RSUs) on May 10, 2024.
• The stock options are for 160,000 shares with an exercise price of $1.81 per share, vesting 25% after one year and then monthly over the following 36 months.
• Le also received 80,000 performance-based RSUs that vest in three stages based on the company's 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 January 25, 2024, appointing Adam Mendelsohn, Judy Wong, and Brigid Makes to act on behalf of Truc Le for SEC filings.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, suggesting a positive outlook for the company's management and future performance. The performance-based RSUs indicate confidence in achieving higher stock prices.

Positives

• The grant of stock options and RSUs to the COO aligns her interests with those of the shareholders, incentivizing her to improve company 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 executive if the target seems unattainable.
• The vesting schedule is contingent on continued service, so the executive leaving the company would forfeit unvested options and RSUs.

Future Outlook

The vesting of the RSUs is contingent on the company's stock price performance, indicating a focus on increasing shareholder value.

Industry Context

Granting stock options and RSUs is a common practice in the biotech industry to attract and retain key executives, aligning their interests with those of shareholders and incentivizing company growth.

Comparison to Industry Standards

• Stock option grants are a standard component of executive compensation packages in the pharmaceutical and biotechnology industries.
• Companies like Amgen and Gilead Sciences also use a mix of salary, stock options, and RSUs to incentivize their executives.
• The vesting schedules and performance-based conditions are generally in line with industry norms, designed to reward long-term value creation.

Stakeholder Impact

• Shareholders may view the executive compensation package positively, as it aligns management's interests with increasing shareholder value.
• Employees may be motivated by the potential for company growth and increased stock price.

Next Steps

• Monitor Vivani Medical's stock price to assess the likelihood of the RSUs vesting.
• Track future SEC filings to observe any changes in Truc Le's beneficial ownership.

Key Dates