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

Rhea-AI Summary

Benefitfocus (NASDAQ: BNFT) recently appointed Ed Rumzis as executive vice president and chief technology officer. In line with this appointment, the company's Compensation and Talent Committee approved an equity grant of 187,664 restricted stock units (RSUs) valued at $1.5 million. The RSUs will vest in four equal annual installments starting from the first anniversary of Rumzis' start date on August 8, 2022. This grant serves as a key incentive for Rumzis, aligning with Nasdaq Listing Rule 5635(c)(4).

Positive

• Appointment of Ed Rumzis as CTO may enhance technology leadership.
• Initial equity grant of $1.5 million aligns executive interests with shareholders.

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• None.

CHARLESTON, S.C., Aug. 09, 2022 (GLOBE NEWSWIRE) -- Benefitfocus Inc. (NASDAQ: BNFT) (“Benefitfocus” or the “Company”), a cloud-based benefits administration technology company committed to helping customers and the people they serve get the most out of their health care and benefit programs, today announced that, in connection with the appointment of Ed Rumzis as executive vice president and chief technology officer, and in accordance with the terms of his employment agreement with the Company, the Compensation and Talent Committee of Benefitfocus’ Board of Directors approved an initial equity grant to Mr. Rumzis of 187,664 restricted stock units (“RSUs”) with a value of $1,500,000 (the “Initial Grant”).

The Initial Grant will vest in four equal annual installments beginning on the first anniversary of Mr. Rumzis’ start date of August 8, 2022, subject to Mr. Rumzis continuing with the Company through the applicable vesting dates and with potential acceleration upon certain terminations of employment. 

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

About Benefitfocus 

Benefitfocus (NASDAQ: BNFT) is a cloud-based benefits administration technology company committed to helping our customers, and the people they serve, get the most out of their health care and benefit programs. Through exceptional service and innovative SaaS solutions, we aim to be the safest set of hands for our customers helping to simplify the complexity of benefits administration while delivering an experience that engages people and unlocks the potential for better health and improved outcomes.  Our mission is simple: to improve lives with benefits. 

Media:
Maurissa Kanter
pr@benefitfocus.com

Investor Relations:
Doug Kuckelman
843-790-7460
doug.kuckelman@benefitfocus.com

Safe Harbor Statement

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 and implement our growth strategy; our reliance on channel relationships; market developments and opportunities; 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 war in Ukraine; 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.

FAQ

What is the value of the equity grant approved for Ed Rumzis at Benefitfocus?

The equity grant for Ed Rumzis is valued at $1.5 million.

When will the RSUs for Ed Rumzis vest?

The RSUs will vest in four equal annual installments beginning on August 8, 2023.

What role has Ed Rumzis been appointed to at Benefitfocus?

Ed Rumzis has been appointed as the executive vice president and chief technology officer.

What is the stock symbol for Benefitfocus?

The stock symbol for Benefitfocus is BNFT.

How many restricted stock units were granted to Ed Rumzis?

Ed Rumzis was granted 187,664 restricted stock units.