eHealth, Inc. Announces Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

eHealth, Inc. (Nasdaq: EHTH) announced on January 1, 2023, that it granted inducement stock unit awards to John Stelben, its new Senior Vice President and CFO. The first award consists of 375,000 shares, vesting over four years, with 25% vesting on the first anniversary and the remainder quarterly. The second award includes 125,000 shares, vesting contingent on achieving stock price goals within four years. These grants comply with Nasdaq Listing Rule 5635(c)(4) and aim to incentivize Stelben in his new role.

Positive

• Inducement grants to new CFO John Stelben may align his interests with shareholder value through stock performance.
• The structure of the stock awards incentivizes long-term commitment and performance-based gains.

Negative

• None.

SANTA CLARA, Calif., Jan. 6, 2023 /PRNewswire/ -- eHealth, Inc. (Nasdaq: EHTH) (eHealth.com), a leading private online health insurance marketplace (the "Company"), today announced that on January 1, 2023, pursuant to the terms previously announced by the Company on November 14, 2022, the Compensation Committee of its Board of Directors granted inducement stock unit awards to John Stelben, who joined the Company as Senior Vice President, Chief Financial Officer of the Company on November 14, 2022. Each of these awards was granted under the Company's Amended and Restated 2021 Inducement Plan (the "Inducement Plan") and otherwise will be subject to the terms and conditions of a stock unit agreement under the Inducement Plan.

Mr. Stelben received two stock unit awards. The first stock unit award covers 375,000 shares of the Company's common stock and will be subject to vesting over four years, with 25% vesting on the first anniversary of the vesting commencement date of November 10, 2022, and the remainder vesting in equal quarterly installments over the subsequent three years, subject to Mr. Stelben's continued service with the Company through the vesting date and potential acceleration upon certain terminations of employment. The second stock unit award covers 125,000 shares of the Company's common stock and will become eligible to vest based on the achievement of stock price goals and will then vest on the first anniversary of the date that the hurdle was met (provided that such price targets are met within four years of the grant date of the award), subject to Mr. Stelben's continued service through the vesting date and potential acceleration upon certain terminations of employment.

The stock unit awards were granted as inducements material to Mr. Stelben entering into employment with the Company in accordance with Nasdaq Listing Rule 5635(c)(4).

About eHealth

For more than 25 years, eHealth, Inc. (Nasdaq: EHTH) has served American consumers with innovative technology and licensed agent support to help them find health insurance solutions that fit their personal needs. Through its proprietary health insurance marketplace at eHealth.com and eHealthMedicare.com, eHealth has connected more than eight million members with quality, affordable coverage. eHealth offers Medicare Advantage, Medicare Supplement, Medicare Part D, individual, family, small business, and ancillary plans from approximately 200 health insurance companies nationwide.

Media inquiries, please contact pr@ehealth.com

Investor Relations Contact:
Kate Sidorovich, CFA
Senior Vice President, Investor Relations & Strategy
Kate.Sidorovich@ehealth.com

 

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SOURCE eHealth, Inc.

FAQ

What stock unit awards did eHealth grant to John Stelben?

eHealth granted John Stelben two stock unit awards: one for 375,000 shares vesting over four years, and another for 125,000 shares contingent on stock price goals.

What is the significance of the inducement grants for eHealth's stock?

The inducement grants aim to align the interests of CFO John Stelben with shareholders, potentially influencing positive stock performance.

Under which Nasdaq rule were the inducement grants made?

The inducement grants were made in accordance with Nasdaq Listing Rule 5635(c)(4).

When did eHealth announce the inducement grants?

eHealth announced the inducement grants on January 1, 2023.