GoHealth Reports Inducement Grant Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

GoHealth, Inc. (NASDAQ: GOCO) announced the grant of equity-based awards to newly appointed CTO Jay Sreedharan on November 14, 2022. This inducement grant, reviewed by the Independent Directors, consists of 2,500,000 restricted stock units (RSUs), which will be adjusted to 166,666 RSUs due to a reverse stock split effective November 17, 2022. These RSUs vest over three years, contingent on Sreedharan's service. GoHealth aims to enhance healthcare access through its digital health platform and has successfully enrolled millions in Medicare and health plans.

Positive

• Inducement grant of 166,666 RSUs provides a financial incentive for the new CTO, potentially boosting executive performance and company growth.
• The reverse stock split may indicate a strategy to enhance share value and attract institutional investors.

Negative

• None.

CHICAGO, Nov. 18, 2022 /PRNewswire/ -- GoHealth, Inc. (GoHealth) (NASDAQ: GOCO), a leading health insurance marketplace and Medicare-focused digital health company, today reported that on November 14, 2022, the Company granted equity-based awards pursuant to the Company's 2021 Inducement Award Plan to Jay Sreedharan, the Company's newly hired chief technology officer. The inducement grant was approved by a majority of the Company's Independent Directors and was made as a material inducement to the employee's acceptance of employment with the Company in accordance with Nasdaq Listing Rule 5635(c)(4) as a component of his employment compensation.

The inducement grant consisted of 2,500,000 restricted stock units ("RSUs") for shares of the Company's common stock. Due to the reverse stock split effectuated by GoHealth on November 17, 2022, such grant will be equitably adjusted to consist of 166,666 RSUs. 

The RSUs vest over three years, with 1/3rd of each vesting on November 14 of 2023, 2024 and 2025. The vesting of each grant is subject to the employee's continued service with the Company through the applicable vesting date. The inducement grant is subject to the terms and conditions of award agreements covering the grant and the Company's 2021 Inducement Stock Incentive Plan.

About GoHealth, Inc.:

As a leading health insurance marketplace and Medicare-focused digital health company, GoHealth's mission is to improve access to healthcare in America. Enrolling in a health insurance plan can be confusing for customers, and the seemingly small differences between plans can lead to significant out-of-pocket costs or lack of access to critical medicines and even providers. GoHealth combines cutting-edge technology, data science and deep industry expertise to match customers with the healthcare policy and carrier that is right for them. GoHealth has enrolled millions of people in Medicare plans and individual and family plans. For more information, visit https://www.gohealth.com.

Investor Relations:
IR@gohealth.com 

Media Relations:
Pressinquiries@gohealth.com

 

 

 

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SOURCE GoHealth, Inc.

FAQ

What was the purpose of GoHealth's inducement grant on November 14, 2022?

The inducement grant aimed to incentivize Jay Sreedharan's acceptance of the CTO position and was approved by the Company's Independent Directors.

How many restricted stock units were granted to GoHealth's new CTO?

Jay Sreedharan was granted 2,500,000 restricted stock units, adjusted to 166,666 due to a reverse stock split.

What is the vesting schedule for the RSUs granted to Jay Sreedharan?

The RSUs vest over three years, with 1/3rd vesting on November 14 of 2023, 2024, and 2025.

What impact does the reverse stock split have on GoHealth's stock?

The reverse stock split is intended to enhance share value and could attract more institutional investors.