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

Rhea-AI Summary

eHealth, Inc. (Nasdaq: EHTH) announced the granting of stock options to Fran Soistman, its newly appointed CEO, effective November 1, 2021. On October 6, 2021, the Compensation Committee approved two inducement stock options totaling 200,000 shares, split equally between Time-Based and Performance-Based Options. The options have an exercise price equal to the closing stock price on the grant date and will vest over four years, subject to certain employment conditions. This grant aligns with NASDAQ Listing Rule 5635(c)(4) to incentivize Soistman’s employment.

Positive

• Inducement grants of 200,000 stock options to the new CEO may align management interests with shareholder value.
• Performance-Based Options provide incentives linked to stock price goals, potentially benefiting shareholders if targets are met.

Negative

• None.

SANTA CLARA, Calif., Oct. 7, 2021 /PRNewswire/ -- eHealth, Inc. (Nasdaq: EHTH), a leading private online health insurance marketplace, today announced that on October 6, 2021, pursuant to the terms previously announced by eHealth on September 23, 2021, the Compensation Committee of its Board of Directors granted two inducement stock options to Fran Soistman, an employee of eHealth, Inc. who has been appointed the Chief Executive Officer of eHealth, Inc. effective November 1, 2021. The first stock option (the "Time-Based Option") relates to 100,000 shares of the common stock of eHealth, Inc., and the second stock option (the "Performance-Based Option") also relates to 100,000 shares of the common stock of eHealth, Inc.  Each of the Time-Based Option and the Performance-Based Option has a per share exercise price equal to the closing price of eHealth, Inc.'s common stock on the date of grant. Subject to continued service through the applicable vesting date (and potential acceleration upon certain terminations of employment), the Time-Based Option will be subject to vesting over four years, with 25% of the Time-Based Option vesting on the first anniversary of the date of his commencement of employment, and the remainder vesting in equal monthly installments over the subsequent three years. The Performance-Based Option will become eligible to vest based on the achievement of stock price goals, and will then vest on the earlier of the first anniversary of the date that the hurdle was met or the fourth anniversary of the date of grant, subject to continued service through the vesting date (and potential acceleration upon certain terminations of employment). Each of the Time-Based Option and Performance-Based Option will be granted under eHealth Inc.'s 2021 Inducement Plan and will otherwise be subject to the terms and conditions of an option agreement thereunder.

The stock options were granted as inducements material to Mr. Soistman entering into employment with eHealth, Inc. in accordance with NASDAQ Listing Rule 5635(c)(4).

About eHealth, Inc.

eHealth, Inc. (NASDAQ: EHTH) operates a leading health insurance marketplace at eHealth.com and eHealthMedicare.com with technology that provides consumers with health insurance enrollment solutions. Since 1997, we have connected more than 8 million members with quality, affordable health insurance, Medicare options, and ancillary plans. Our proprietary marketplace offers Medicare Advantage, Medicare Supplement, Medicare Part D prescription drug, individual, family, small business and other plans from over 200 health insurance carriers across fifty states and the District of Columbia.

Media inquiries:
Lara Sasken
Vice President, Communications
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 options were granted to eHealth's new CEO Fran Soistman?

Fran Soistman was granted 200,000 stock options consisting of 100,000 Time-Based Options and 100,000 Performance-Based Options.

When will Fran Soistman start as CEO of eHealth?

Fran Soistman will officially become the CEO of eHealth on November 1, 2021.

What is the exercise price for the stock options granted to Fran Soistman?

The exercise price for both stock options is equal to the closing price of eHealth's common stock on the date of grant.

What are the vesting conditions for the stock options granted to Fran Soistman?

The Time-Based Option vests over four years, while the Performance-Based Option vests based on achieving stock price goals.

What compliance rule does the stock option grant to Fran Soistman fall under?

The grant is compliant with NASDAQ Listing Rule 5635(c)(4), which governs inducement grants.