iRobot Announces Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

iRobot (NASDAQ: IRBT) announced the granting of equity awards to Gary S. Cohen, the newly-appointed CEO, on June 7, 2024. The awards include 290,000 time-based restricted stock units (RSUs) and 435,000 performance-based restricted stock units (PSUs). The RSUs will vest over three years, while the PSUs will vest in three tranches over four years, contingent on Cohen's continuous employment and the company's stock price milestones. These awards were given as an inducement to Cohen's employment, approved by iRobot's Board of Directors under NASDAQ Rule 5635(c)(4).

Positive

• Appointment of new CEO, Gary S. Cohen, potentially bringing fresh leadership and vision.
• Grant of 290,000 time-based restricted stock units (RSUs) for employee retention over three years.
• Grant of 435,000 performance-based restricted stock units (PSUs) tied to stock performance, aligning CEO's interests with shareholders.

Negative

• Significant equity dilution with 725,000 new shares granted outside the equity incentive plan.
• Long vesting periods of three to four years may delay realization of potential benefits from CEO's performance.

BEDFORD, Mass., June 11, 2024 /PRNewswire/ -- iRobot Corp. (NASDAQ: IRBT), a leader in consumer robots, today announced that it granted equity awards on June 7, 2024 as a material inducement to the employment of the company's newly-hired Chief Executive Officer, Gary S. Cohen.

Notice of Issuance of Inducement Grant

In connection with the appointment of Mr. Cohen as Chief Executive Officer effective May 6, 2024, iRobot granted Mr. Cohen employment inducement awards consisting of (a) 290,000 time-based restricted stock units ("RSUs") and (b) 435,000 performance-based restricted stock units ("PSUs"), each with an effective grant date of June 7, 2024. The RSUs will vest over a three-year period, subject to Mr. Cohen's continuous employment on each vesting date. The PSUs will vest in three tranches over a four-year performance period based on Mr. Cohen's continuous employment through the service period for the applicable tranche and iRobot's achievement of certain price milestones of iRobot's common stock.

The inducement awards to Mr. Cohen were granted as a material inducement to his employment and were approved by iRobot's Board of Directors on June 7, 2024, in accordance with Rule 5635(c)(4) of The NASDAQ Stock Market LLC. The awards were granted outside iRobot's equity incentive plan.

About iRobot Corp.
iRobot is a global consumer robot company that designs and builds thoughtful robots and intelligent home innovations that make life better. iRobot introduced the first Roomba robot vacuum in 2002. Today, iRobot is a global enterprise that has sold more than 50 million robots worldwide. iRobot's product portfolio features technologies and advanced concepts in cleaning, mapping and navigation. Working from this portfolio, iRobot engineers are building robots and smart home devices to help consumers make their homes easier to maintain and healthier places to live. For more information about iRobot, please visit www.irobot.com.  

 

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SOURCE iRobot Corporation

FAQ

What is the significance of iRobot's inducement grants announced on June 7, 2024?

iRobot granted significant equity awards to newly-hired CEO Gary S. Cohen as an inducement to his employment, comprising 290,000 RSUs and 435,000 PSUs.

When did Gary S. Cohen become the CEO of iRobot?

Gary S. Cohen was appointed as the Chief Executive Officer of iRobot effective May 6, 2024.

What are the conditions for the vesting of the RSUs granted to iRobot's CEO?

The 290,000 RSUs will vest over three years, contingent on Gary S. Cohen's continuous employment on each vesting date.

How are the PSUs granted to iRobot's CEO structured?

The 435,000 PSUs will vest in three tranches over a four-year period, based on Cohen's continuous employment and iRobot's stock price milestones.

Under which NASDAQ rule were the inducement grants approved?

The inducement grants were approved under NASDAQ Rule 5635(c)(4).