Mitek Announces Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)
Mitek Systems, Inc. (NASDAQ: MITK), a leader in digital identity verification and fraud management solutions, has granted significant equity awards to its newly-hired CEO, Edward H. West. The compensation package, designed to align with stockholder interests, includes:
1. $8,000,000 in total grant date fair value
2. $6,375,000 in performance-based restricted stock units (PSUs)
3. $1,625,000 in service-based restricted stock units (RSUs)
The PSUs are tied to stock price performance goals compared to the Russell 2000 and direct stock price improvement. The RSUs vest over four years. These awards, granted as inducement under Nasdaq Listing Rule 5635(c)(4), aim to incentivize long-term company performance and shareholder value creation.
Mitek Systems, Inc. (NASDAQ: MITK), leader nelle soluzioni di verifica dell'identità digitale e gestione delle frodi, ha concesso significativi premi azionari al suo nuovo CEO, Edward H. West. Il pacchetto retributivo, progettato per allinearsi con gli interessi degli azionisti, include:
1. $8.000.000 di valore equo totale alla data di concessione
2. $6.375.000 in unità azionarie vincolate basate sulle prestazioni (PSUs)
3. $1.625.000 in unità azionarie vincolate basate sul servizio (RSUs)
Le PSUs sono legate a obiettivi di performance del prezzo delle azioni rispetto al Russell 2000 e al miglioramento diretto del prezzo delle azioni. Le RSUs maturano in quattro anni. Questi premi, concessi come incentivo ai sensi della Regola di Quotazione Nasdaq 5635(c)(4), mirano a incentivare la performance aziendale a lungo termine e la creazione di valore per gli azionisti.
Mitek Systems, Inc. (NASDAQ: MITK), líder en soluciones de verificación de identidad digital y gestión de fraudes, ha otorgado premios de capital significativos a su nuevo CEO, Edward H. West. El paquete de compensación, diseñado para alinearse con los intereses de los accionistas, incluye:
1. $8,000,000 en valor justo total a la fecha de concesión
2. $6,375,000 en unidades de acciones restringidas basadas en el rendimiento (PSUs)
3. $1,625,000 en unidades de acciones restringidas basadas en el servicio (RSUs)
Las PSUs están vinculadas a objetivos de rendimiento del precio de las acciones en comparación con el Russell 2000 y la mejora directa del precio de las acciones. Las RSUs se consolidan durante cuatro años. Estos premios, otorgados como incentivo bajo la Regla de Cotización Nasdaq 5635(c)(4), tienen como objetivo incentivar el rendimiento a largo plazo de la empresa y la creación de valor para los accionistas.
Mitek Systems, Inc. (NASDAQ: MITK), 디지털 신원 확인 및 사기 관리 솔루션의 선두주자인 이 회사는 새로운 CEO인 Edward H. West에게 상당한 주식 보상을 수여했습니다. 주주 이익과 일치하도록 설계된 보상 패키지에는 다음이 포함됩니다:
1. $8,000,000의 총 부여일 공정 가치
2. $6,375,000의 성과 기반 제한 주식 단위 (PSUs)
3. $1,625,000의 서비스 기반 제한 주식 단위 (RSUs)
PSU는 Russell 2000에 비해 주가 성과 목표에 연결되어 있으며 주가 개선과도 관련이 있습니다. RSU는 4년 동안 분할 지급됩니다. 이러한 보상은 Nasdaq 상장 규칙 5635(c)(4)에 따라 유인으로 지급되며, 장기적인 회사 성과와 주주 가치 창출을 장려하는 것을 목표로 합니다.
Mitek Systems, Inc. (NASDAQ: MITK), un leader dans les solutions de vérification d'identité numérique et de gestion de la fraude, a accordé des récompenses en actions significatives à son nouveau PDG, Edward H. West. Le package de rémunération, conçu pour s'aligner sur les intérêts des actionnaires, comprend :
1. $8,000,000 en valeur totale équitable à la date d'attribution
2. $6,375,000 en unités d'actions restreintes basées sur la performance (PSUs)
3. $1,625,000 en unités d'actions restreintes basées sur le service (RSUs)
Les PSUs sont liés à des objectifs de performance du prix des actions par rapport au Russell 2000 et à l'amélioration directe du prix des actions. Les RSUs s'acquièrent sur quatre ans. Ces attributions, accordées en tant qu'incitation selon la Règle d'inscription Nasdaq 5635(c)(4), visent à encourager la performance à long terme de l'entreprise et la création de valeur pour les actionnaires.
Mitek Systems, Inc. (NASDAQ: MITK), ein führendes Unternehmen für digitale Identitätsüberprüfung und Betrugsmanagement-Lösungen, hat bedeutende Eigenkapitalvergaben an seinen neu eingeführten CEO, Edward H. West, gewährt. Das Vergütungspaket, das darauf ausgelegt ist, mit den Interessen der Aktionäre übereinzustimmen, umfasst:
1. $8.000.000 im Gesamtwert zum Zeitpunkt der Vergabe
2. $6.375.000 in leistungsbasierten, eingeschränkten Aktieneinheiten (PSUs)
3. $1.625.000 in dienstbasierten, eingeschränkten Aktieneinheiten (RSUs)
Die PSUs sind an Leistungsziele des Aktienkurses im Vergleich zum Russell 2000 und an die direkte Verbesserung des Aktienkurses gebunden. Die RSUs werden über vier Jahre fällig. Diese Auszeichnungen, die als Anreiz gemäß der Nasdaq-Listing-Regel 5635(c)(4) gewährt werden, zielen darauf ab, die langfristige Unternehmensleistung und die Schaffung von Aktionärswert zu fördern.
- Appointment of new CEO Edward H. West
- Compensation package heavily weighted towards performance-based equity ($6,375,000 out of $8,000,000)
- Alignment of CEO's interests with stockholders through performance-based vesting requirements
- Potential for additional PSUs to vest upon achievement of above-target performance levels
- None.
Insights
The appointment of Edward H. West as CEO with a significant equity-based compensation package signals Mitek's commitment to aligning executive interests with shareholder value. The
The structure of the award is noteworthy:
- Performance-based PSUs:
$6.375 million tied to stock price performance relative to the Russell 2000 and direct stock price improvement. - Service-based RSUs:
$1.625 million vesting over four years, ensuring retention.
This compensation strategy could potentially motivate aggressive growth initiatives and shareholder returns. However, investors should monitor the company's performance closely, as the CEO's interests are now strongly tied to stock price movements, which may influence decision-making.
The inducement grant for Mitek's new CEO is a double-edged sword from a governance perspective. On the positive side, it strongly aligns the CEO's interests with shareholders, potentially driving value creation. The heavy weighting towards performance-based vesting (
However, the magnitude of the award (
The use of stock price as the sole performance metric, while simple and transparent, may not fully capture the company's operational performance. Investors should watch for any unintended consequences, such as short-term focus or excessive risk-taking to boost the stock price.
The overarching philosophy in the design of Mr. West’s compensation package was an emphasis on equity-based compensation directly tied to building stockholder value in lieu of significant guaranteed cash and/or service-based equity. To this end, in connection with Mr. West’s appointment as the Company’s Chief Executive Officer, its Board and Compensation Committee approved employment inducement awards for Mr. West with a grant date fair value of
The awards consist of (i) 562,283 PSUs that may vest, if at all, upon the achievement of target-level stock price performance goals of the Company compared to the Russell 2000 (with an additional 185,553 PSUs eligible to vest upon the achievement of above-target level performance), (ii) 173,010 PSUs that may vest, if at all, upon the achievement of target-level direct stock price improvement performance goals of the Company (with an additional 57,093 PSUs eligible to vest upon the achievement of above-target level performance) and (iii) 187,427 RSUs that vest in four equal annual installments from the start date. In each case, vesting of the PSUs and RSUs is subject to Mr. West’s continuous employment through the applicable vesting date or earlier vesting due to a change of control and certain termination events.
The PSUs and RSUs are intended to be inducement awards under Rule 5635(c)(4) of the Nasdaq Listing Rules and were granted outside of the Company’s Amended and Restated 2020 Incentive Plan (the “Plan”). Although the PSUs and RSUs were granted as inducement awards outside of the Plan, the PSUs and RSUs are subject to the terms of the Plan.
About Mitek:
Mitek (NASDAQ: MITK) is a global leader in digital access, founded to bridge the physical and digital worlds. Mitek’s advanced identity verification technologies and global platform make digital access faster and more secure than ever, providing companies new levels of control, deployment ease and operation, while protecting the entire customer journey. Trusted by
Follow Mitek on LinkedIn and YouTube, and read Mitek’s latest blog posts here.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241001487442/en/
Investor Contact:
Todd Kehrli or Jim Byers
MKR Investor Relations, Inc.
mitk@mkr-group.com
Source: Mitek Systems, Inc.
FAQ
What is the total value of equity awards granted to Mitek's new CEO?
How are the equity awards for Mitek's new CEO structured?
What are the vesting conditions for the PSUs granted to Mitek's new CEO?
How do the RSUs granted to Mitek's new CEO vest?
