Castlight Health Reports Inducement Grant Under NYSE Listing Rules

Rhea-AI Summary

On September 4, 2020, Castlight Health (CSLT) announced an equity inducement award to Vijay Anand, its new Executive Vice President of Engineering. The Compensation and Talent Committee granted Anand a stock option to purchase 1,178,000 shares and a restricted stock unit award for 760,870 shares, both tied to his employment. The option's exercise price is $1.19 per share, matching the closing price on September 3, 2020. Vesting will occur over four years, starting with 25% on the one-year anniversary of August 16, 2020.

Positive

• Grant of stock options and restricted stock units to a key executive may enhance talent retention.
• Inducement aligns executive interests with shareholder value through stock options.

Negative

• The large stock option grant could lead to shareholder dilution if the options are exercised.

News Market Reaction – CSLT

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On the day this news was published, CSLT declined 1.69%, reflecting a mild negative market reaction.

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SAN FRANCISCO, Sept. 4, 2020 /PRNewswire/ -- Castlight Health, Inc. (NYSE: CSLT), a leading health benefits platform provider, today reported an equity inducement award to Vijay Anand, Castlight's new Executive Vice President of Engineering.

In accordance with The New York Stock Exchange's Listed Company Manual Rule 303A.08, on September 3, 2020, the Compensation and Talent Committee of Castlight's Board of Directors granted Mr. Anand a stock option award to purchase 1,178,000 shares of Class B common stock and a restricted stock unit award for 760,870 shares of Class B common stock as a material inducement to join Castlight.

The stock options have an exercise price of $1.19 per share, which is equal to the closing price of Castlight's Class B common stock on the New York Stock Exchange on September 3, 2020.  The stock options and restricted stock units will both vest over a four-year period, with 25% of the shares vesting on the one-year anniversary of August 16, 2020, the vesting commencement date, and thereafter the remaining shares will vest quarterly thereafter, subject to Mr. Anand's continued service. 

All of the stock options and restricted stock units were granted outside the terms of Castlight's equity incentive plans in reliance on the employment inducement exemption under the NYSE's Listed Company Manual Rule 303A.08. Pursuant to the requirements of that rule, Castlight is issuing this press release.

About Castlight Health
Castlight is on a mission to make it as easy as humanly possible for its users to navigate the healthcare system and live happier, healthier, more productive lives. Our health navigation platform connects hundreds of health vendors, benefits resources, and plan designs into one comprehensive health and wellbeing experience. We guide individuals—based on their unique profile—to the best resources available to them, whether they are healthy, chronically ill, or actively seeking medical care. Castlight transforms the employee benefit experience into a deeply personalized, yet simple, guided one, empowering better-informed patient decisions to unlock better healthcare outcomes and maximizing return on healthcare investments.

For more information visit www.castlighthealth.com. Follow us on Twitter and LinkedIn and Like us on Facebook.

Castlight Media Contact:
Caroline Kawashima
press@castlighthealth.com
415-246-0313

Castlight Investor Contact:
ir@castlighthealth.com
443-213-0500

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SOURCE Castlight Health, Inc.

FAQ

What stock options were granted to Vijay Anand of Castlight Health?

Vijay Anand was granted a stock option to purchase 1,178,000 shares at an exercise price of $1.19.

What is the vesting schedule for Vijay Anand's stock awards?

The stock options and restricted stock units will vest over four years, starting with 25% on the one-year anniversary of August 16, 2020.

Under which NYSE rule did Castlight Health grant the inducement award?

The inducement award was granted in accordance with NYSE's Listed Company Manual Rule 303A.08.

When was the stock inducement grant announced by Castlight Health?

The inducement grant was announced on September 4, 2020.