FTC Solar Announces Inducement Grant of Employee Inducement Award

Rhea-AI Summary

FTC Solar (Nasdaq: FTCI), a leading provider of solar tracker systems, has announced an employment inducement award for its new President and CEO, Yann Brandt. The award, approved by the Board of Directors, includes 4,000,000 restricted stock units (RSUs) and 2,500,000 performance-based restricted stock units (PSUs). The RSUs will vest over three years, with 25% vesting on the grant date and the remainder vesting monthly. The PSUs will vest over four years, subject to achieving specific share value targets. This award, granted without shareholder approval, is in line with Nasdaq Stock Market Listing Rule 5635(c) for employment inducement awards. Brandt's employment with FTC Solar is set to begin on August 19, 2024, as per the agreement dated July 17, 2024.

Positive

• Appointment of a new President and CEO, potentially bringing fresh leadership
• Significant stock-based compensation package aligning CEO's interests with shareholders
• Performance-based elements in the compensation package tied to share value growth

Negative

• Potential dilution of existing shareholders due to the large number of new stock units
• High upfront cost of the compensation package with 25% of RSUs vesting immediately

AUSTIN, Texas, Aug. 16, 2024 (GLOBE NEWSWIRE) -- FTC Solar, Inc. (Nasdaq: FTCI), a leading global provider of solar tracker systems, software, and engineering services, today announced that, in accordance with Nasdaq Listing Center requirements, Yann Brandt, the Company’s President and Chief Executive Officer, will be granted an employment inducement award in reliance on Nasdaq Stock Market Listing Rule 5635(c).

As previously announced, the Company and Mr. Brandt have entered into an employment agreement, dated July 17, 2024 (the “Employment Agreement”), for his employment with the Company commencing on August 19, 2024 (the “Employment Commencement Date”) in connection with his appointment by the Board of Directors of FTC Solar effective as of the Employment Commencement Date.

The employment inducement award will consist of (i) an award of 4,000,000 restricted stock units (“RSUs”) (which will vest over a three-year period, with the initial 25% tranche vesting on the date of grant, and the remaining RSUs vesting in equal tranches at the end of each month thereafter until the three-year anniversary of the date of grant), and (ii) an award of 2,500,000 performance-based restricted stock units (“PSUs”), which will vest over the four-year period commencing on the Employment Commencement Date, subject to the attainment of certain share value hurdles as set forth in the Employment Agreement and, in each case, subject to Mr. Brandt’s continued employment through each applicable RSU and PSU vesting date, consistent with the terms of Mr. Brandt’s employment agreement with the Company.  These awards were approved by the Board of Directors of FTC Solar to be granted on the Employment Commencement Date without shareholder approval as “employment inducement awards” under the Nasdaq Stock Market Listing Rule 5635(c), which requires public announcement of such inducement awards.

About FTC Solar Inc.
Founded in 2017 by a group of renewable energy industry veterans, FTC Solar is a leading provider of solar tracker systems, technology, software, and engineering services. Solar trackers significantly increase energy production at solar power installations by dynamically optimizing solar panel orientation to the sun. FTC Solar’s innovative tracker designs provide compelling performance and reliability, with an industry-leading installation cost-per-watt advantage.

Forward-Looking Statements
This press release contains forward looking statements. These statements are not historical facts but rather are based on our current expectations and projections regarding our business, operations and other factors relating thereto. Words such as “may,” “will,” “could,” “would,” “should,” “anticipate,” “predict,” “potential,” “continue,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates” and similar expressions are used to identify these forward-looking statements. These statements are only predictions and as such are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. You should not rely on our forward-looking statements as predictions of future events, as actual results may differ materially from those in the forward-looking statements because of several factors, including those described in more detail above and in our filings with the U.S. Securities and Exchange Commission, including the section entitled “Risk Factors” contained therein. FTC Solar undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events or changes in its expectations, except as required by law.

FTC Solar Investor Contact:
Bill Michalek
Vice President, Investor Relations
FTC Solar
T: (737) 241-8618
E: IR@FTCSolar.com

FAQ

What is the employment inducement award granted to Yann Brandt by FTC Solar (FTCI)?

Yann Brandt's employment inducement award consists of 4,000,000 restricted stock units (RSUs) vesting over three years and 2,500,000 performance-based restricted stock units (PSUs) vesting over four years, subject to specific share value targets.

When does Yann Brandt start as President and CEO of FTC Solar (FTCI)?

Yann Brandt is set to begin his role as President and CEO of FTC Solar (FTCI) on August 19, 2024, as per the employment agreement dated July 17, 2024.

How will the RSUs granted to Yann Brandt by FTC Solar (FTCI) vest?

The RSUs granted to Yann Brandt will vest over a three-year period, with 25% vesting on the grant date and the remaining RSUs vesting in equal monthly tranches until the three-year anniversary of the grant date.

What is the vesting schedule for the PSUs granted to Yann Brandt by FTC Solar (FTCI)?

The PSUs granted to Yann Brandt will vest over a four-year period starting from his employment commencement date, subject to attaining certain share value hurdles as outlined in his employment agreement.