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

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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.

Arlo Technologies (NYSE: ARLO) ha concesso premi azionari a dodici nuovi dipendenti non esecutivi nel quadro del suo Piano di Incentivazione Azionaria del 2018. I premi comprendono 414.086 unità di azioni vincolate (RSU) e 270.000 RSU con scadenza in base alle performance (PSU). Dieci dipendenti hanno ricevuto RSU con maturazione annuale su quattro anni, mentre altri hanno ricevuto RSU con maturazione su cinque anni con percentuali variabili. Le PSU si matureranno in due rate uguali, in base al raggiungimento di 2-3 milioni di nuovi abbonati paganti cumulativi entro la fine del 2023. Tutti i premi sono subordinati al mantenimento dell'impiego.

Arlo Technologies (NYSE: ARLO) ha otorgado premios en acciones a doce nuevos empleados no ejecutivos bajo su Plan de Incentivo de Acciones de 2018. Las concesiones incluyen 414,086 unidades de acciones restringidas (RSUs) y 270,000 RSUs vinculadas al rendimiento (PSUs). Diez empleados recibieron RSUs que se acumulan anualmente durante cuatro años, mientras que otros recibieron RSUs que se acumulan durante cinco años con porcentajes variables. Las PSUs se acumularán en dos cuotas iguales basadas en la consecución de 2-3 millones de suscriptores acumulativos pagos adicionales a finales de 2023. Todos los premios están condicionados a la continuación del empleo.

Arlo Technologies (NYSE: ARLO)는 2018년 주식 인센티브 계획에 따라 12명의 신규 비임원 직원에게 주식 보상을 지급했습니다. 보상에는 414,086주의 제한 주식 단위(RSU)270,000주의 성과 기반 주식(RSU)가 포함됩니다. 10명의 직원이 4년에 걸쳐 매년 벗어나는 RSU를 받았고, 나머지 직원들은 5년에 걸쳐 다양한 비율의 RSU를 받았습니다. PSU는 2023년 말까지 200만에서 300만 명의 추가 유료 구독자를 달성하는 것을 기반으로 두 번의 동일한 분할로 발생할 것입니다. 모든 보상은 계속 고용되는 것에 따라 다릅니다.

Arlo Technologies (NYSE: ARLO) a accordé des attributions d'actions à douze nouveaux employés non-exécutifs dans le cadre de son Plan d'Incentive en Actions de 2018. Les attributions comprennent 414,086 unités d'actions restreintes (RSU) et 270,000 RSU liées à la performance (PSU). Dix employés ont reçu des RSU qui se débloquent annuellement sur quatre ans, tandis que d'autres ont reçu des RSU qui se débloquent sur cinq ans avec des pourcentages variables. Les PSU se débloqueront en deux versements égaux en fonction de l'atteinte de 2 à 3 millions d'abonnés payants cumulés supplémentaires d'ici fin 2023. Tous les attributions dépendent de la poursuite de l'emploi.

Arlo Technologies (NYSE: ARLO) hat zwölf neuen Nicht-Exekutivmitarbeitern im Rahmen seines Aktienanreizplans von 2018 Aktienvergütungen gewährt. Die Zuwendungen umfassen 414.086 Restricted Stock Units (RSUs) und 270.000 leistungsabhängige RSUs (PSUs). Zehn Mitarbeiter erhielten RSUs, die über vier Jahre jährlich fällig werden, während andere RSUs erhielten, die über fünf Jahre mit variierenden Prozentsätzen fällig werden. Die PSUs werden in zwei gleichen Tranchen fällig, basierend auf der Erreichung von 2-3 Millionen zusätzlichen kumulierten zahlenden Abonnenten bis Ende 2023. Alle Zuwendungen sind von der Fortsetzung des Beschäftigungsverhältnisses abhängig.

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

Insights

The inducement equity grants reveal Arlo's strategic focus on expanding its subscriber base and retaining key talent. The structure of the 414,086 RSUs and 270,000 PSUs demonstrates a long-term commitment, with vesting periods extending up to five years. Most notably, the performance metrics tied to gaining 2-3 million new paid subscribers indicates aggressive growth targets for the company's recurring revenue streams.

The tiered vesting schedule, particularly the back-loaded structure with larger portions vesting in years 2-4, serves as a strong retention tool while aligning employee interests with long-term company success. This compensation strategy suggests Arlo is positioning itself for significant expansion in its subscription business model, which could materially impact future revenue stability and profitability.

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.

Arlo Technologies, Inc.

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