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

Rhea-AI Summary

On December 21, 2021, GoHealth (NASDAQ: GOCO) announced the granting of equity-based awards to newly appointed CFO Vance Johnston under its 2021 Inducement Award Plan. The approval was made by independent directors and aimed to incentivize Johnston's employment acceptance. The awards include a non-statutory option to purchase 438,099 shares at an exercise price of $3.55, along with 281,690 restricted stock units (RSUs). Both options and RSUs will vest over three years, contingent upon Johnston's continued service.

Positive

• Inducement grants aimed to attract a high-caliber CFO.
• Equity-based compensation aligns interests with shareholders.
• Stock options and RSUs provide potential future financial benefits.

Negative

• Granting large equity awards could dilute existing shareholder value.

CHICAGO, Dec. 21, 2021 /PRNewswire/ -- GoHealth, Inc. (GoHealth) (NASDAQ: GOCO), a leading health insurance marketplace and Medicare-focused digital health company, today reported that on December 21, 2021, the Company granted equity-based awards pursuant to the Company's 2021 Inducement Award Plan to Vance Johnston, the Company's newly hired chief financial officer. The inducement grants were approved by a majority of the Company's Independent Directors and were 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 grants consisted of a non-statutory option to purchase an aggregate of 438,099 shares of the Company's common stock, and 281,690 restricted stock units ("RSUs") for shares of the Company's common stock.

The stock options each have an exercise price of $3.55 per share, equal to the closing price of GoHealth's common stock on December 21, 2021. The stock options each have a ten-year term. Each of the options and RSUs vest over three years, with 1/3^rd of each vesting on Dec. 7 of 2022, 2023 and 2024. The vesting of each grant is subject to the employee's continued service with the Company through the applicable vesting date. The inducement grants are subject to the terms and conditions of award agreements covering the grants 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. Since its inception, GoHealth has enrolled millions of people in Medicare plans and individual and family plans. For more information, visit https://www.gohealth.com.

Contacts:

Investor Relations, IR@gohealth.com 
Media Relations, pressinquiries@gohealth.com

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SOURCE GoHealth, Inc.

FAQ

What are the details of the inducement grants made by GoHealth on December 21, 2021?

GoHealth granted equity-based awards to CFO Vance Johnston including options to purchase 438,099 shares at $3.55 each and 281,690 restricted stock units.

How does the inducement grant impact GoHealth's stock performance?

While it attracts talent, large equity awards may dilute shareholder value.

What is the vesting schedule for the stock options granted to GoHealth's CFO?

The stock options vest over three years, with one-third vesting annually on December 7 from 2022 to 2024.