eHealth, Inc. Announces Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)
Rhea-AI Summary
eHealth (Nasdaq: EHTH) announced inducement grants for incoming CEO Derrick Duke, who will succeed Fran Soistman effective September 18, 2025. Duke joined the company on August 4, 2025 to begin the transition process.
The Compensation Committee granted Duke two restricted stock unit (RSU) awards under the company's Amended and Restated 2021 Inducement Plan. The first award of 300,000 shares vests over three years, while the second award of 300,000 shares is performance-based, vesting upon achievement of company goals between fiscal 2025 and 2027.
Positive
- Structured transition period planned between current and new CEO
- Performance-based RSUs align new CEO compensation with company goals
Negative
- Significant potential shareholder dilution with 600,000 total RSUs granted
News Market Reaction
On the day this news was published, EHTH declined 0.58%, reflecting a mild negative market reaction. Argus tracked a trough of -3.1% from its starting point during tracking. Our momentum scanner triggered 4 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $689K from the company's valuation, bringing the market cap to $118M at that time.
Data tracked by StockTitan Argus on the day of publication.
Each of these awards was granted under the Company's Amended and Restated 2021 Inducement Plan (the "Inducement Plan") and otherwise will be subject to the terms and conditions of a restricted stock unit agreement under the Inducement Plan.
Mr. Duke received two restricted stock unit awards. The first restricted stock unit award covers 300,000 shares of the Company's common stock and is subject to vesting over three years, with one-third of the shares vesting on each of the first, second and third anniversary of the award's vesting commencement date of August 4, 2025, subject to Mr. Duke's continued service with the Company through each vesting date and potential acceleration upon certain terminations of employment.
The second restricted stock unit award covers 300,000 shares of the Company's common stock and will become eligible to vest based on the achievement of Company performance goals over a three year performance period between fiscal 2025 and fiscal 2027, subject to Mr. Duke's continued service with the Company through the last trading day of the calendar month in which achievement is certified and potential acceleration upon certain terminations of employment.
The stock unit awards were granted as inducements material to Mr. Duke's entering into employment with the Company in accordance with Nasdaq Listing Rule 5635(c)(4).
About eHealth, Inc.
We're Matchmakers. For over 25 years, eHealth has helped millions of Americans find the healthcare coverage that fits their needs at a price they can afford. As a leading independent licensed insurance agency and advisor, eHealth offers across to over 180 health insurers, including national and regional companies.
For more information, visit ehealth.com or follow us on LinkedIn, Facebook, Instagram, and X. Open positions can be found on our career page.
Media Inquiries:
Lara Sasken
Chief Communications Officer
pr@ehealth.com
Investor Relations Contact:
Kate Sidorovich, CFA
Senior Vice President, Investor Relations & Corporate Development
investors@ehealth.com
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SOURCE eHealth, Inc.
FAQ
When will Derrick Duke become the new CEO of eHealth (EHTH)?
What compensation package did eHealth (EHTH) offer to new CEO Derrick Duke?
How will Derrick Duke's RSUs vest at eHealth (EHTH)?
When did Derrick Duke join eHealth (EHTH)?
