Form 4: Xtant Medical Holdings CFO Awarded Deferred Stock Units

Xtant Medical Holdings' CFO, Scott C. Neils, received a deferred stock unit award on April 3, 2024, which will vest over the next four years, conditioned upon continued employment.

Summary

• On April 3, 2024, Scott C. Neils, the Chief Financial Officer of Xtant Medical Holdings, Inc., was granted a deferred stock unit award for 177,551 shares of common stock.
• These shares will vest in four equal installments annually on April 3, 2025, April 3, 2026, April 3, 2027 and April 3, 2028.
• Vesting is contingent upon Neils remaining an employee of Xtant Medical Holdings through each applicable vesting date.
• The settlement of the vested shares will occur at a later date according to the terms of the award agreement.
• Following this transaction, Neils beneficially owns 664,423 shares of Xtant Medical Holdings common stock, including shares issuable upon vesting and settlement of previous restricted stock unit awards and deferred stock unit awards.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. It reflects standard executive compensation practices, indicating confidence in the executive's continued service and alignment with shareholder interests.

Positives

• The vesting schedule incentivizes the CFO to remain with the company for the long term.

Risks

• The vesting of the shares is contingent upon the CFO's continued employment with the company; his departure would forfeit unvested shares.

Future Outlook

The document does not contain specific forward-looking statements regarding the company's financial performance or future prospects, but the equity award suggests an ongoing commitment to retaining key personnel.

Industry Context

Equity compensation is a common practice in the medical device industry to attract and retain key executives. The vesting schedule aligns the executive's interests with the long-term performance of the company.

Comparison to Industry Standards

• Stock options and restricted stock units are frequently used by companies like Medtronic, Stryker, and Johnson & Johnson to incentivize their executives.
• Vesting schedules of 3-5 years are typical in the industry to ensure long-term commitment.

Stakeholder Impact

• Shareholders: The equity award aligns management's interests with shareholder value.
• Employees: The award can boost morale by demonstrating the company's investment in its leadership.

Key Dates