Arlo Technologies Announces Inducement Awards Under NYSE Rule 303A.08

Rhea-AI Summary

Arlo Technologies (NYSE: ARLO), a leading smart home security brand, has announced equity grants to new employees under its 2018 Equity Incentive Plan, in compliance with NYSE Rule 303A.08. On July 29, 2024, the company's Compensation and Human Capital Committee granted restricted stock units (RSUs) to 18 new non-executive employees, covering a total of 257,540 shares of common stock.

The RSU grants are structured as follows:

• 17 employees received RSUs covering 157,540 shares, vesting annually in four equal installments
• 1 employee received RSUs covering 100,000 shares, vesting annually over five years with varying percentages

All RSUs are contingent on continued employment with Arlo Technologies at the applicable vesting dates.

Positive

• Arlo Technologies is attracting new talent with equity incentives
• The company is aligning employee interests with shareholder interests through RSU grants
• Structured vesting schedules encourage long-term employee retention

Negative

• Potential dilution of existing shareholders' equity due to the issuance of 257,540 new shares

SAN JOSE, Calif., July 29, 2024 /PRNewswire/ -- Arlo Technologies, Inc. (NYSE: ARLO), a leading smart home security brand, today announced that it had made equity grants to new employees under its 2018 Equity Incentive Plan (the "Plan") in accordance with NYSE Rule 303A.08.

On July 29, 2024, Arlo's Compensation and Human Capital Committee granted restricted stock units, or RSUs, to eighteen new non-executive employees covering an aggregate of 257,540 shares of the Company's common stock as an inducement for such employees to join the Company.

The RSU's granted to seventeen of the employees, covering an aggregate of 157,540 shares, vest annually in four equal annual installments. The remaining RSU grant, covering an aggregate of 100,000 shares, vests annually over five years, with 15% of the shares vesting on the first anniversary of the vesting date, 25% of the shares vesting on the second, third and fourth anniversaries of the vesting date and the remaining 10% of the shares vesting on the fifth anniversary of the vesting date. In all cases, the RSUs are contingent on each employee's continued service with the Company at the applicable vesting date.

About Arlo Technologies, Inc.

Arlo is an award-winning, industry leader that is transforming the ways in which people can protect everything that matters to them with advanced home, business, and personal security solutions. Arlo's deep expertise in AI- and CV-powered analytics, cloud services, user experience and product design, and innovative wireless and RF connectivity enables the delivery of a seamless, smart security experience for Arlo users that is easy to set up and interact with every day. Arlo's cloud-based platform provides users with visibility, insight, and a powerful means to help protect and connect in real-time with the people and things that matter most, from any location with a Wi-Fi or a cellular connection. To date, Arlo has launched several categories of award-winning connected devices, software, and services. These include wire-free, smart Wi-Fi and LTE-enabled security cameras, video doorbells, floodlights, security system, and Arlo's subscription services: Arlo Secure and Arlo Safe.

With a mission to bring users peace of mind, Arlo is as passionate about protecting user privacy as it is about safeguarding homes and families. Arlo is committed to implementing industry standards for data protection designed to keep users' personal information private and in their control. Arlo does not monetize personal data, provides enhanced controls for user data, supports privacy legislation, keeps user data safely secure, and puts security at the forefront of company culture.

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SOURCE Arlo Technologies, Inc.

FAQ

How many new employees received RSU grants from Arlo Technologies (ARLO) on July 29, 2024?

Arlo Technologies (ARLO) granted restricted stock units (RSUs) to 18 new non-executive employees on July 29, 2024.

What is the total number of shares covered by the RSU grants issued by Arlo Technologies (ARLO)?

The RSU grants issued by Arlo Technologies (ARLO) cover a total of 257,540 shares of the company's common stock.

How are the RSU grants structured for most of the new employees at Arlo Technologies (ARLO)?

For 17 of the 18 new employees, the RSU grants covering 157,540 shares vest annually in four equal installments.

What is the vesting schedule for the largest individual RSU grant made by Arlo Technologies (ARLO)?

The largest individual RSU grant, covering 100,000 shares, vests annually over five years with 15% in the first year, 25% in years 2-4, and 10% in the fifth year.