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

Rhea-AI Summary

NETGEAR announced inducement equity awards on May 30, 2024, for newly-hired General Counsel and Chief Privacy Officer, Kirsten Daru, and VP of Strategy & Partnership, Antonio Lopez Reus.

The awards were granted under Nasdaq Listing Rule 5635(c)(4) and include time-based restricted stock units (RSUs) and performance-based RSUs.

Kirsten Daru received 101,250 time-based RSUs and 33,750 performance-based RSUs, while Antonio Lopez Reus received 58,479 time-based RSUs.

Vesting schedules involve annual and quarterly installments, contingent upon continued service, with performance metrics tied to NETGEAR’s total shareholder return compared to the Nasdaq Telecommunications Index.

Positive

• Inducement awards align with Nasdaq Listing Rule 5635(c)(4), showing compliance.
• Awards are designed to attract and retain senior executives, which could strengthen leadership.
• Time-based and performance-based RSUs provide incentives for sustained executive performance.
• Long-term vesting schedules may promote stability and continued commitment from new executives.

Negative

• Inducement awards involve significant equity dilution, potentially impacting existing shareholders.
• Performance-based RSUs are contingent on future shareholder returns, introducing uncertainty.
• If performance metrics are not met, potential loss in executive motivation and morale.

SAN JOSE, Calif.--(BUSINESS WIRE)-- NETGEAR, Inc. (Nasdaq: NTGR), the leading provider of innovative and secure solutions for people to connect and manage their digital lives, today announced that it granted inducement equity awards on May 30, 2024 to newly-hired General Counsel and Chief Privacy Officer, Kirsten Daru, and newly-hired VP, Strategy & Partnership, Antonio Lopez Reus. The awards were granted in accordance with Nasdaq Listing Rule 5635(c)(4) as a material inducement to Ms. Daru’s and Mr. Lopez Reus’ employment with NETGEAR.

The inducement awards consist of (1) an award of time-based restricted stock units (“RSUs”) relating to 101,250 shares of NETGEAR’s common stock to Ms. Daru, (2) an award of time-based RSUs relating to 58,479 shares of NETGEAR’s common stock to Mr. Lopez Reus (each, an “RSU Award”), and (3) an award of performance-based RSUs with a target amount of 33,750 shares of NETGEAR’s common stock to Ms. Daru (the “PSU Award”).

One-third (1/3rd) of the total number of shares subject to each RSU Award will vest on the one-year anniversary of May 31, 2024, and one-twelfth (1/12th) of the total number of shares subject to each RSU Award will vest in equal quarterly installments thereafter, in each case subject to Ms. Daru and Mr. Lopez Reus providing continued service with NETGEAR through such vesting date for their respective RSU Awards.

The number of shares subject to the PSU Award that become eligible to vest (“Earned PSUs”) will be determined based on how NETGEAR’s total shareholder return (“TSR”) from April 27, 2024 through December 31, 2026 compares to the TSRs of the companies in the Nasdaq Telecommunications Index (IXTC). The Earned PSUs, if any, will vest on May 31, 2027, subject to Ms. Daru’s continued service with NETGEAR through such date.

About NETGEAR, Inc.

NETGEAR® (Nasdaq: NTGR) has pioneered advanced networking technologies for homes, businesses, and service providers around the world since 1996 and leads the industry with a broad range of award-winning products designed to simplify and improve people's lives. By enabling people to collaborate and connect to a world of information and entertainment, NETGEAR is dedicated to delivering innovative and advanced connected solutions ranging from mobile and cloud-based services for enhanced control and security, to smart networking products, video over Ethernet for Pro AV applications, easy-to-use WiFi solutions and performance gaming routers to enhance online game play. The company is headquartered out of San Jose, Calif. with offices located around the globe. More information is available from the NETGEAR Press Room or by calling (408) 907-8000. Connect with NETGEAR: Facebook, Instagram and the NETGEAR blog at NETGEAR.com.

© 2024 NETGEAR, Inc. NETGEAR and the NETGEAR logo are trademarks or registered trademarks of NETGEAR, Inc. and its affiliates in the United States and/or other countries. Other brand and product names are trademarks or registered trademarks of their respective holders. The information contained herein is subject to change without notice. NETGEAR shall not be liable for technical or editorial errors or omissions contained herein. All rights reserved.

Source: NETGEAR-F

View source version on businesswire.com: https://www.businesswire.com/news/home/20240605900346/en/

NETGEAR Investor Relations

Erik Bylin

investors@netgear.com

Source: NETGEAR, Inc.

FAQ

What are NETGEAR's inducement equity awards announced on May 30, 2024?

NETGEAR granted inducement equity awards to newly-hired executives Kirsten Daru and Antonio Lopez Reus, consisting of time-based and performance-based restricted stock units.

How many shares were awarded to NETGEAR's new General Counsel?

Kirsten Daru received 101,250 time-based restricted stock units and 33,750 performance-based restricted stock units.

What is the vesting schedule for NETGEAR's inducement equity awards?

One-third of the RSUs will vest on the one-year anniversary of May 31, 2024, with the remaining shares vesting in equal quarterly installments, contingent upon continued service.

What performance metrics are tied to NETGEAR's performance-based RSUs?

The performance metrics are based on NETGEAR's total shareholder return compared to the Nasdaq Telecommunications Index from April 27, 2024, through December 31, 2026.

When will the performance-based RSUs for NETGEAR vest?

The performance-based RSUs will vest on May 31, 2027, subject to continued service.