Arlo Technologies Announces Inducement Awards Under NYSE Rule 303A.08

Rhea-AI Summary

Arlo Technologies (NYSE: ARLO) has granted equity awards to twelve new non-executive employees under its 2018 Equity Incentive Plan. The grants include 414,086 restricted stock units (RSUs) and 270,000 performance-vesting RSUs (PSUs). Ten employees received RSUs vesting annually over four years, while others received RSUs vesting over five years with varying percentages. The PSUs will vest in two equal installments based on achieving 2-3 million incremental cumulative paid subscribers from end-2023. All grants are contingent on continued employment.

Positive

• Implementation of performance-based incentives tied to subscriber growth targets
• Strategic talent acquisition with equity-based compensation structure

Negative

• Potential shareholder dilution from issuance of 684,086 new shares

SAN JOSE, Calif., Oct. 29, 2024 /PRNewswire/ -- Arlo Technologies, Inc. (NYSE: ARLO), a leading smart home security brand, today announced that it had made equity grants to new employees under its 2018 Equity Incentive Plan (the "Plan") in accordance with NYSE Rule 303A.08.

On October 29, 2024, Arlo's Compensation and Human Capital Committee granted restricted stock units ("RSUs") and performance-vesting RSUs ("PSUs"), to twelve new non-executive employees covering an aggregate of 414,086 shares of the Company's common stock as an inducement for such employees to join the Company.

The RSUs granted to ten of the employees, covering an aggregate of 45,224 shares, vest annually in four equal annual installments.  The remaining RSU grants, covering an aggregate of 368,862 shares, vest annually over five years, with 15% of the shares vesting on the first anniversary of the vesting date, 25% of the shares vesting on the second, third and fourth anniversaries of the vesting date, and the remaining 10% of the shares vesting on the fifth anniversary of the vesting date.

The PSUs, covering an aggregate of 270,000 shares, are eligible to vest in two equal installments based on the extent to which Arlo achieves 2 and or 3 million incremental cumulative paid subscribers from the end of 2023. Upon achievement of the requisite number of incremental cumulative paid subscribers, the corresponding PSUs will be fully vested.

In all cases, the RSUs and PSUs are contingent on each employee's continued service with the Company at the applicable vesting date.

About Arlo Technologies, Inc.

Arlo is an award-winning, industry leader that is transforming the ways in which people can protect everything that matters to them with advanced home, business, and personal security solutions. Arlo's deep expertise in AI- and CV-powered analytics, cloud services, user experience and product design, and innovative wireless and RF connectivity enables the delivery of a seamless, smart security experience for Arlo users that is easy to set up and interact with every day. Arlo's cloud-based platform provides users with visibility, insight, and a powerful means to help protect and connect in real-time with the people and things that matter most, from any location with a Wi-Fi or a cellular connection. Arlo has recently launched several categories of award-winning connected devices, software, and services. These include wire-free, smart Wi-Fi and LTE-enabled security cameras, video doorbells, floodlights, security system, and Arlo's subscription service, Arlo Secure. 

With a mission to bring users peace of mind, Arlo is as passionate about protecting user privacy as it is about safeguarding homes and families. Arlo is committed to implementing industry standards for data protection designed to keep users' personal information private and in their control. Arlo does not monetize personal data, provides enhanced controls for user data, supports privacy legislation, keeps user data safely secure, and puts security at the forefront of company culture.

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SOURCE Arlo Technologies, Inc.

FAQ

How many shares did Arlo Technologies (ARLO) grant in equity awards on October 29, 2024?

Arlo Technologies granted a total of 414,086 RSUs and 270,000 PSUs, totaling 684,086 shares of common stock.

What are the vesting conditions for Arlo's (ARLO) October 2024 PSU grants?

The PSUs vest in two equal installments based on achieving 2 and/or 3 million incremental cumulative paid subscribers from the end of 2023.

What is the vesting schedule for Arlo's (ARLO) RSU grants announced in October 2024?

Ten employees received RSUs vesting equally over four years, while others received RSUs vesting over five years with 15% in year one, 25% in years two through four, and 10% in year five.