Vislink Technologies, Inc. Announces Inducement Grant Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Vislink Technologies, Inc. (VISL) announced the grant of time-based and performance-based restricted stock units (RSUs) to Bill Sweeney and Kimberly Iadevaia, as inducement grants for becoming employees of the company. The RSUs will vest over a period of three years, with 50% being time-based and the remaining being performance-based, subject to specified performance metrics set by the Board of Directors or Compensation Committee by March 31, 2024.

Insights

Market Research Analyst

The granting of restricted stock units (RSUs) to key personnel such as Bill Sweeney and Kimberly Iadevaia by Vislink Technologies is a strategic move that merits attention from the perspective of a Market Research Analyst. The appointment of a Managing Director for Military/Government and a VP for Human Resources with performance-based incentives aligns with the company's objectives to strengthen its leadership in these critical areas. The military and government sector often requires specialized expertise and the appointment could signal Vislink's commitment to expanding its footprint in this niche market. The performance metrics, once set by the board, will likely reflect strategic company goals and could serve as a barometer for Vislink's future performance in these sectors.

From a market perspective, the issuance of RSUs as inducements is a common practice used to attract and retain top talent, especially in competitive industries. However, the specifics of the performance metrics and their alignment with shareholder value creation will be key factors in assessing the long-term impact of these appointments. Investors often view such equity-based compensation as aligning the interests of management with those of shareholders, as it ties rewards to company performance. However, the dilutive effect of RSUs on existing shareholders' equity is a consideration that must be weighed against the potential benefits of strengthened leadership and improved company performance.

Financial Analyst

As a Financial Analyst, evaluating the financial implications of Vislink Technologies' decision to grant RSUs to its new Managing Director and VP of Human Resources is essential. The financial impact of these grants largely depends on the company's stock performance, which in turn is influenced by the company's operational success. The performance-based aspect of the RSUs serves as an incentive for the new executives to drive the company towards achieving specific goals. For investors, the performance conditions attached to the RSUs may provide a clue to Vislink's strategic priorities and potential growth areas, which could be factored into stock valuation models.

Furthermore, the vesting schedule of the RSUs over three years suggests a long-term commitment from the executives to the company. This can be viewed positively by investors as it promotes stability within Vislink's leadership team. However, the eventual vesting of these shares will increase the total number of shares outstanding, potentially diluting the value of existing shares. Investors will need to monitor the company's ability to offset this dilution through enhanced performance and increased earnings. Additionally, the actual expense recognized by the company for these equity awards will depend on Vislink's stock price at the time of vesting, which adds a variable cost element to the company's future financials.

Human Resources Expert

An analysis from a Human Resources perspective reveals that Vislink Technologies' approach to executive compensation with RSUs reflects current trends in talent management. By offering a mix of time-based and performance-based RSUs, Vislink appears to be incentivizing not only the retention of key personnel but also the achievement of performance targets that are presumably aligned with the company's strategic objectives. The dual nature of these awards can help in motivating the executives to focus on both short-term and long-term goals.

It is also significant that these awards are being granted outside of the company's existing equity compensation plans, which suggests that Vislink may be offering terms tailored to the unique qualifications or expectations of these particular hires. This flexibility can be an advantage in attracting high-caliber talent. The challenge, however, lies in ensuring that the performance metrics are robust and effectively drive the desired business outcomes. For current and potential employees, this move may indicate that Vislink is willing to invest in its leadership team, which could have a positive impact on the company culture and employer brand.

Mt. Olive, NJ, Jan. 02, 2024 (GLOBE NEWSWIRE) -- Vislink Technologies, Inc. (“Vislink” or the “Company”) (Nasdaq: VISL) announced today that effective January 1, 2024, Bill Sweeney was granted a time-based and performance-based award of 24,266 restricted stock units (“RSUs”) of the Company, outside of the Company’s existing equity compensation plans, in connection with Mr. Sweeney’s becoming employed as of that date as Managing Director, Military/Government of the Company. These RSUs were granted as an inducement grant material to Mr. Sweeney becoming an employee of Vislink in accordance with Nasdaq Listing Rule 5635(c)(4).

Effective on January 1, 2024 as well, Kimberly Iadevaia was granted a time-based and performance-based award of 6,066 restricted stock units (“RSUs”) of the Company, outside of the Company’s existing equity compensation plans, in connection with Ms. Iadevaia’s becoming employed as of that date as VP, Human Resources of the Company. These RSUs were granted as an inducement grant material to Ms. Iadevaia becoming an employee of Vislink in accordance with Nasdaq Listing Rule 5635(c)(4).

For both Mr. Sweeney and Ms. Iadevaia, 50% of the inducement RSUs are time-based and will vest as to one-third of such time-based RSUs on each anniversary date over a period of three years. The balance of the inducement RSUs are performance-based. The performance-based RSUs will vest in three equal tranches of shares upon the Company’s attainment of specified performance metrics to be set by the Board of the Directors of the Company or Compensation Committee thereof by March 31, 2024, subject in each case to Mr. Sweeney’s and Ms. Iadevaia’s continued employment by the Company on the applicable vesting date. Upon vesting, the RSUs shall be settled in shares of the Company’s common stock.

Note on Forward-looking Statements

Certain statements in this press release are forward-looking statements that involve substantial risks and uncertainties for purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. This press release contains forward-looking statements that involve substantial risks and uncertainties for purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. Any statements, other than statements of historical fact included in this press release, including those regarding the Company’s strategy, new hires, future operations, future revenues, growth, profitability results, and financial position, risks of supply chain constraints and inflationary pressures, projected expenses, prospects, plans including footprint and technology asset consolidations, objectives of management, new capabilities, product and solutions launches including AI-assisted and 5G streaming technologies, expected contract values, projected pipeline sales opportunities and transactions in our sales pipeline, Q4 cash collection and revenue from late Q3 orders, acquisitions integration including the recently acquired BMS assets, cost savings, and expected market opportunities across the Company’s operating segments including the live event production market, the effects of the COVID-19 pandemic, the sufficiency of the Company’s capital resources to fund the Company’s operations and any statements regarding future results are forward-looking statements. Vislink may not actually achieve the plans, carry out the intentions or meet the expectations or projections disclosed in any forward-looking statements such as the foregoing, and you should not place undue reliance on such forward-looking statements. Such statements are based on management’s current expectations and involve risks and uncertainties, including those discussed in Vislink’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, filed with the Securities and Exchange Commission (“SEC”) on March 31, 2023, and in subsequent filings with, or submissions to, the SEC from time to time.

The statements made in this press release speak only as of the date stated herein, and subsequent events and developments may cause the Company’s expectations and beliefs to change. While the Company may elect to update these forward-looking statements publicly at some point in the future, the Company specifically disclaims any obligation to do so, whether as a result of new information, future events, or otherwise, except as required by law. These forward-looking statements should not be relied upon as representing the Company’s views as of any date after the date stated herein.

About Vislink Technologies, Inc.
Vislink Technologies is a global technology leader in capturing, delivering and managing high-quality live video and associated data. With a renowned heritage in video communications encompassing over 50 years, Vislink has revolutionized live video communications by delivering the highest-quality video from the scene, even in the most challenging transmission conditions—enabling broadcasters and public safety agencies to capture and share live video seamlessly and securely. Through its Mobile Viewpoint product lines, Vislink also provides live streaming solutions using bonded cellular, 5G, and AI-driven technologies for automated news and sports productions. Vislink’s shares of common stock are publicly traded on the Nasdaq Capital Market under the ticker symbol “VISL.” For more information, visit www.vislink.com.

Media Contact:
Nicole Rosen
D. Pagan Communications
nicoler@dpagan.com

Investor Relations Contact:
Matt Glover and Alec Wilson
Gateway Group, Inc.
VISL@gateway-grp.com

FAQ

What is the recent announcement from Vislink Technologies, Inc. (VISL)?

Vislink announced the grant of time-based and performance-based restricted stock units (RSUs) to Bill Sweeney and Kimberly Iadevaia as inducement grants for becoming employees of the company.

Who were the individuals granted the RSUs and for what roles?

Bill Sweeney was granted RSUs as Managing Director, Military/Government, and Kimberly Iadevaia was granted RSUs as VP, Human Resources.

How will the RSUs vest?

The RSUs will vest as to one-third of the time-based RSUs on each anniversary date over a period of three years, and the performance-based RSUs will vest in three equal tranches of shares upon the Company’s attainment of specified performance metrics.

What is the significance of the RSUs being granted as inducement grants?

The RSUs were granted as inducement grants material to Mr. Sweeney and Ms. Iadevaia becoming employees of Vislink in accordance with Nasdaq Listing Rule 5635(c)(4).

When will the performance metrics for the RSUs be set?

The performance metrics for the RSUs will be set by the Board of Directors or Compensation Committee by March 31, 2024.