Benefitfocus Announces Inducement Grant Under NASDAQ Listing Rule 5635(C)(4)

Rhea-AI Summary

Benefitfocus (NASDAQ: BNFT) announces the appointment of Matthew Levin as CEO, effective May 10, 2021. The board approved an initial equity grant to Levin valued at $5 million, comprising 70% restricted stock units (RSUs) and 30% performance stock units (PSUs). The RSUs will vest in four annual installments, while the PSUs will vest based on stock price milestones after two years, contingent on Levin's continued employment. This grant aims to align Levin's incentives with shareholder interests and ensure his retention.

Positive

• Appointment of Matthew Levin as CEO expected to bring leadership stability.
• Equity grant aligns CEO incentives with shareholder interests, promoting long-term value.
• Initial equity grant valued at $5 million may attract investor confidence.

Negative

• None.

CHARLESTON, S.C., May 07, 2021 (GLOBE NEWSWIRE) -- Benefitfocus, Inc. (NASDAQ: BNFT), an industry-leading benefits technology platform that simplifies benefits administration for employers, health plans and brokers, announces that, in connection with the appointment of Matthew Levin as president and chief executive officer, and in accordance with the terms of his employment agreement with the Company, Benefitfocus’ board of directors approved an initial equity grant to Mr. Levin consisting of 70% restricted stock units (“RSUs”) and 30% performance stock units (“PSUs”) with a total value of $5,000,000, totaling 248,826 RSUs and 106,640 PSUs (the “Initial Grant”).

The Initial Grant has three purposes: to compensate Mr. Levin for the forgone awards from Mr. Levin’s previous employment; to create further alignment between Mr. Levin and our public shareholders through a performance-based award with vesting based on strong stock price performance; and to retain and motivate Mr. Levin’s performance over the next several years through an additional retention-based award; in all cases, subject to Mr. Levin continuing with Benefitfocus through the applicable vesting dates.

The RSU portion of the Initial Grant will vest in four equal annual installments beginning on the first anniversary of Mr. Levin’s start date, which is expected on May 10, 2021 (the “Start Date”).  The PSU portion of the Initial Grant will vest in a single installment if the Company achieves a stock price milestone after the second anniversary of the Start Date and prior to the fifth anniversary of the Start Date, subject to a minimum service requirement of three years by Mr. Levin.

The Initial Grant was made as a material inducement to Mr. Levin becoming an employee of Benefitfocus in accordance with Nasdaq Listing Rule 5635(c)(4). The RSUs and PSUs are subject to the terms and conditions of the grant agreements covering each grant.

About Benefitfocus 
Benefitfocus (NASDAQ: BNFT) unifies the entire benefits industry through innovative technology solutions that bring efficiency, cost savings and simplicity to employee benefits administration. Our powerful cloud-based software, data-driven insights and thoughtfully designed services help employers, insurance brokers, health plans and suppliers address the complexity of benefits enrollment and engagement, while bringing easier access to health, wealth and lifestyle products through a world-class benefits experience. Our mission is simple: to improve lives with benefits. Learn more at www.benefitfocus.com, LinkedIn and Twitter.

DISCLAIMER REGARDING FORWARD LOOKING STATEMENTS
Except for historical information, all of the statements, expectations, and assumptions contained in this press release are forward-looking statements. Actual results might differ materially from those explicit or implicit in the forward-looking statements. Important factors that could cause actual results to differ materially include: our ability to maintain our culture and recruit, integrate and retain qualified personnel, including on our board of directors; our ability to compete effectively; the need to innovate and provide useful products and services; risks related to changing healthcare and other applicable regulations; the immature and volatile nature of the market for our products and services; privacy; security and other risks associated with our business; management of growth; volatility and uncertainty in the global economy and financial markets in light of the evolving COVID-19 pandemic; and the other risk factors set forth from time to time in our SEC filings, copies of which are available free of charge within the Investor Relations section of the Benefitfocus website at http://investor.benefitfocus.com/sec-filings or upon request from our Investor Relations Department. Benefitfocus assumes no obligation and does not intend to update these forward-looking statements, except as required by law.

Benefitfocus, Inc.
843-981-8898
pr@benefitfocus.com

Investor Relations:
Patti Leahy
843-981-8899
ir@benefitfocus.com 

FAQ

What was announced in the recent press release about Benefitfocus (BNFT)?

Benefitfocus announced the appointment of Matthew Levin as CEO and approved a $5 million equity grant.

What is included in Matthew Levin's initial equity grant at Benefitfocus?

The equity grant consists of 70% restricted stock units (RSUs) and 30% performance stock units (PSUs).

What is the vesting schedule for Matthew Levin's equity grant at Benefitfocus?

The RSUs will vest in four equal annual installments, while the PSUs will vest based on stock price milestones after two years.

Why was the equity grant for Matthew Levin issued by Benefitfocus?

The grant is intended to compensate for forgone awards from his previous employment and to align his interests with shareholders.