RE:excercise of rights
mofwmofw wrote: Jonathan Pollack Sept. 7-21, 17,045 volume or value. Just curious of the meaning. thanks
Hi mofwmofw.
Acuityads grants "rights"to officers that vest over an 18 month period. Directors receive grant of rights that vest over a 12 month period. After the Cfo Jonathan Pollack receives his grant of rights, he must wait a minimum of 18 months for his rights to vest. At that point he can exercise his right and receive the same number of shares at no additional cost to him. He can sell these shares in the open market immediately after vesting.
One other point worth mentioning is that exercising of rights is different than exercising of options. In the latter case, you may exercise your options when the fair market value exceeds the exercise price and after your vesting period ends. In the former case with Acuityads, the grant of rights have no exercise price as the employee gets to keep the entire amount to himself. With stock options, the employee makes the difference between the fair market price and the strike price per share while the company receives proceeds equal to the strike price multiplied by the number of shares. In a restricted stock unit or "grant of rights" the company receives no proceeds but the employee receives the full compensation for his services.