Performance Clarification may be in Order...Here is the package of Options/etc. that was given out 02/28....
Seto Kellum
02/28/2022 Options 2,609,271 974,148
02/28/2022 Performance 3,000,000 3,000,000
Share Units (PSU)*
02/28/2022 Restricted Share Units 914,653 312,500
*Companies typically use PSUs as a form of mid-term compensation as the units usually vest after three years. It converts an amount that would normally be paid as a bonus or other cash remuneration to share ownership. It is meant to encourage employees to meet certain performance targets and maximize share value over the medium-term.
What remains to be seen is what ARE the performance targets that both Seto and Kellum were given for their PSU's ?
Are they meaningful targets/milestomes like for example: FDA approval of Tigris? FDA apparoval of DIMI (for Home Use) ? Completion of Trial only? Or something soft and easy like: Hitting 36 enrollees? Settiing up an office NFL pool? Could be any number of things, but I suspect (hope it's) one or more of the former
Presumably they should only win (via PSU's) if WE all win on the SP. Could be a similar thing for the RSU's. i.e. they could be performance or milestone based, or they could be restricted in only minor ways.
I like to think the BoD compensation Committee has thought this through. Maybe I'm being too optimisitic? The ordinary options, in and of themselves, are generous, by prior year standards.
MM