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Intevac Reports Inducement Grants under Nasdaq Listing Rule 5635(c)(4)
Rhea-AI Impact
(Low)
Rhea-AI Sentiment
(Very Positive)
Tags
Rhea-AI Summary
Intevac, Inc. (NASDAQ: IVAC) announced the grant of inducement awards to new CEO Nigel Hunton following his January 2022 appointment. This includes 166,500 shares in a time-based RSU Award, 100,000 shares in another time-based RSU Award, and a performance-based RSU Award of 333,500 shares (up to 667,000 shares at max performance). The vesting schedules vary, with the performance award linked to stock price achievements over a three-year period ending in May 2025. These awards were granted under the 2022 Inducement Equity Incentive Plan approved on January 19, 2022.
Positive
Inducement awards granted to CEO Nigel Hunton could align his performance with shareholder interests.
The structure of the awards (time-based and performance-based) encourages long-term value creation.
Negative
Significant stock-based compensation could dilute existing shareholders' equity.
Performance-based awards are linked to stock price achievement, potentially introducing volatility.
SANTA CLARA, Calif.--(BUSINESS WIRE)--
Intevac, Inc. (Nasdaq: IVAC, “Intevac” or “the Company”), a leading supplier of thin-film processing systems, today announced, as required by Nasdaq Stock Market rules, the grant of inducement awards to Nigel Hunton in connection with his appointment as Intevac’s new Chief Executive Officer in January 2022. Such grants were made under the Intevac, Inc. 2022 Inducement Equity Incentive Plan, which Intevac’s board of directors approved and adopted on January 19, 2022.
As provided for in Mr. Hunton’s employment agreement with Intevac and previously described in the Current Report on Form 8-K filed by Intevac with the Securities and Exchange Commission on January 20, 2022 and as an inducement material to him entering into employment, Mr. Hunton’s inducement grants consist of: (1) an award of time-based restricted stock units covering 166,500 shares of Intevac’s common stock (the “First RSU Award”); (2) an award of time-based restricted stock units covering 100,000 shares of Intevac’s common stock (the “Second RSU Award”); and (3) an award of performance-based restricted stock units covering 333,500 shares of Intevac’s common stock at target performance (667,000 shares at maximum performance) (the “PRSU Award”). Subject in each case to continued service through the applicable vesting date, the First RSU Award is scheduled to vest in approximately equal annual installments over three years from Mr. Hunton’s start date with Intevac, the Second RSU Award is scheduled to vest in full on the first anniversary of Mr. Hunton’s start date with Intevac, and the PRSU Award is eligible to be earned based on achievement of certain stock prices generally based on the average closing price of the Company’s stock over a 30-day period during a three-year performance period commencing on May 18, 2022 and ending on May 31, 2025. The First RSU Award and Second RSU Award were granted on February 17, 2022 and the PRSU Award was granted on May 18, 2022 as a material inducement to Mr. Hunton’s acceptance of employment with the Company in accordance with Nasdaq Listing Rule 5635(c)(4).
About Intevac
Founded in 1991, we are the world’s leading provider of hard disk drive (HDD) media processing systems. Over the last 15 years, we have delivered over 160 200 Lean® systems, which currently represent at least 65% of the world’s capacity for HDD disk media production. Today, we believe that all of the new media capacity additions for the HDD industry are being deployed on our 200 Lean platform. With over 30 years of leadership in designing, developing, and manufacturing high-productivity, thin-film processing systems, we also have opportunities to leverage our technology in additional applications, such as protective coatings for the display cover glass market. For more information call 408-986-9888, or visit the Company's website at www.intevac.com.
James Moniz Chief Financial Officer
(408) 986-9888
Claire McAdams Investor Relations
(530) 265-9899
Source: Intevac, Inc.
FAQ
What inducement awards were granted to Intevac's new CEO Nigel Hunton?
Nigel Hunton received awards including 166,500 shares in a time-based RSU Award, 100,000 shares in another time-based RSU Award, and a performance-based RSU Award of 333,500 shares at target performance (up to 667,000 shares at maximum performance).
When were the inducement awards for Nigel Hunton granted?
The First and Second RSU Awards were granted on February 17, 2022, while the PRSU Award was granted on May 18, 2022.
What is the vesting schedule for Nigel Hunton's RSU Awards?
The First RSU Award vests in equal annual installments over three years; the Second RSU Award vests fully on the first anniversary of his start date; the PRSU Award is eligible based on stock price achievements over a three-year period ending on May 31, 2025.
How do the inducement awards impact Intevac shareholders?
While these awards could align the CEO's interests with shareholders, they may also dilute existing shareholder equity due to the significant stock-based compensation.
