Cerence Announces Equity Grant to Employee Under Inducement Plan Pursuant to Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Cerence Inc. (NASDAQ: CRNC) has announced an equity grant to its newly appointed Chief Executive Officer and President, Brian Krzanich, effective October 7, 2024. The initial equity award has a target aggregate value of $6 million, based on the average closing price of the Company's common stock over the trailing 20 trading days ending on the date of grant.

The award consists of 1,038,062 time-based restricted stock units and a target of 1,038,062 performance-based restricted stock units. The time-based units will vest in three equal installments on October 7, 2025, 2026, and 2027, subject to Krzanich's continued service. The performance-based units will be earned based on Company performance metrics during the three fiscal-year period ending September 30, 2027, subject to Krzanich's continued service through the fiscal year 2027 earnings release date.

These awards were granted as an inducement for Krzanich to join Cerence, in accordance with Nasdaq Listing Rule 5635(c)(4).

Positive

• Appointment of new CEO and President, Brian Krzanich
• Significant equity grant of $6 million to attract top executive talent
• Performance-based restricted stock units tied to company performance metrics

Negative

• Potential dilution of existing shareholders due to new equity issuance

News Market Reaction

-2.97%

1 alert

-2.97% News Effect

On the day this news was published, CRNC declined 2.97%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

BURLINGTON, Mass., Oct. 11, 2024 (GLOBE NEWSWIRE) -- Cerence Inc. (NASDAQ: CRNC) (the “Company”), AI for a world in motion, today announced that, in connection with Brian Krzanich’s recent appointment as Chief Executive Officer and President effective October 7, 2024, the Company granted Mr. Krzanich an initial equity award with a target aggregate value of $6 million, based on the average closing price of the Company’s common stock over the trailing 20 trading days ending on the date of grant. Such award consists of 1,038,062 time-based restricted stock units and a target of 1,038,062 performance-based restricted stock units. The time-based restricted stock units will vest in three equal installments on each of October 7, 2025, October 7, 2026, and October 7, 2027, in each case subject to Mr. Krzanich’s continued service with the Company through the applicable vesting date. The performance-based restricted stock units will be earned based on the achievement of Company performance metrics during the three fiscal-year period ending on September 30, 2027, subject to Mr. Krzanich’s continued service with the Company through the date that the Company publicly issues its earnings release for fiscal year 2027. All of these awards were granted as an inducement material to Mr. Krzanich entering into employment with the Company pursuant to Rule 5635(c)(4) of the Nasdaq Listing Rules.

To learn more about Cerence, visit www.cerence.com, and follow the company on LinkedIn.

About Cerence Inc.
Cerence (NASDAQ: CRNC) is the global industry leader in creating unique, moving experiences for the mobility world. As an innovation partner to the world’s leading automakers and mobility OEMs, it is helping advance the future of connected mobility through intuitive, AI-powered interaction between humans and their vehicles, connecting consumers’ digital lives to their daily journeys no matter where they are. Cerence’s track record is built on more than 20 years of knowledge and 500 million cars shipped with Cerence technology. Whether it’s connected cars, autonomous driving, e-vehicles, or two-wheelers, Cerence is mapping the road ahead. For more information, visit www.cerence.com.  

Contact Information

Investors: Rich Yerganian | Tel: 781-708-2801 | Email: richard.yerganian@cerence.com

Media: Kate Hickman | Tel: 339-215-4583 | Email: kate.hickman@cerence.com

FAQ

What is the value of the equity grant given to Cerence's new CEO?

Cerence (CRNC) granted its new CEO, Brian Krzanich, an initial equity award with a target aggregate value of $6 million, based on the average closing price of the Company's common stock over the trailing 20 trading days ending on the date of grant.

When did Brian Krzanich start as CEO of Cerence (CRNC)?

Brian Krzanich was appointed as Chief Executive Officer and President of Cerence (CRNC) effective October 7, 2024.

How many restricted stock units were granted to Cerence's (CRNC) new CEO?

Cerence (CRNC) granted its new CEO 1,038,062 time-based restricted stock units and a target of 1,038,062 performance-based restricted stock units.

What is the vesting schedule for the time-based restricted stock units granted to Cerence's (CRNC) new CEO?

The time-based restricted stock units granted to Cerence's (CRNC) new CEO will vest in three equal installments on October 7, 2025, October 7, 2026, and October 7, 2027, subject to continued service with the Company.