Myriad Genetics Announces Inducement Awards

Rhea-AI Summary

Myriad Genetics (NASDAQ: MYGN) announced equity inducement awards for their newly appointed chief commercial officer, Mr. Donnelly. The compensation package includes:

• Total restricted stock units worth $3.75 million
• $2 million in time-based RSUs vesting equally over 4 years
• $1.75 million in performance-based PSUs tied to stock price targets

The exact number of units will be determined based on MYGN's closing price on April 30, 2025. The PSUs will vest in 25% increments upon reaching specific stock price milestones, with no vesting possible before the first employment anniversary. These awards were granted under Nasdaq Listing Rule 5635(c)(4) as material inducement for employment.

Positive

• Structured executive compensation package heavily tied to stock performance incentivizes leadership to drive shareholder value
• Four-year vesting schedule promotes long-term executive retention

Negative

• Potential dilution of existing shareholders from new stock issuance
• Significant equity compensation expense of $3.75 million

SALT LAKE CITY, April 08, 2025 (GLOBE NEWSWIRE) -- Myriad Genetics, Inc. (NASDAQ: MYGN), a leader in molecular diagnostics testing and precision medicine, announced today that in connection with the hiring of Mr. Donnelly as chief commercial officer, previously announced on April 7, 2025, the Board of Directors of Myriad Genetics authorized the grant to Mr. Donnelly of restricted stock units equal to $3.75 million, comprising (i) time-based restricted stock units (RSUs) equal to $2 million and (ii) performance-based restricted stock units (PSUs) equal to $1.75 million, in each case effective as of the first day of his employment. These equity awards are inducements material to Mr. Donnelly’s entering into employment with Myriad Genetics in accordance with Nasdaq Listing Rule 5635(c)(4).

The number of restricted stock units granted will be determined based on the closing price of the company’s common stock on the Nasdaq Stock Market on April 30, 2025. The RSUs will vest in four equal installments on each of the first four anniversaries of the grant date provided that Mr. Donnelly is providing services to the company on such dates. The PSUs become eligible to vest upon achievement of certain stock price targets and will vest as to 25% of the shares subject to the PSUs upon achievement of each of the four stock price targets, provided that no portion of the PSUs may vest earlier than the first anniversary of Mr. Donnelly’s employment and Mr. Donnelly is providing services to the company on the applicable vesting dates. The RSUs and PSUs are subject to the terms and conditions of their respective restricted stock unit agreements.

About Myriad Genetics
Myriad Genetics is a leading molecular diagnostics testing and precision medicine company dedicated to advancing health and well-being for all. Myriad Genetics develops and offers molecular tests that help assess the risk of developing disease or disease progression and guide treatment decisions across medical specialties where molecular insights can significantly improve patient care and lower healthcare costs. For more information, visit www.myriad.com.

Safe Harbor Statement
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to Mr. Donnelly’s inducement awards. These “forward-looking statements” are management’s expectations of future events as of the date hereof and are subject to known and unknown risks and uncertainties that could cause actual results, conditions, and events to differ materially and adversely from those anticipated. Such factors include those risks described in the company’s filings with the U.S. Securities and Exchange Commission, including the company’s Annual Report on Form 10-K filed on February 28, 2025, as well as any updates to those risk factors filed from time to time in the company’s Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. Myriad is not under any obligation, and it expressly disclaims any obligation, to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise except as required by law.

Investor Contact
Matt Scalo
(801) 584-3532 
IR@myriad.com

Media Contact
Kate Schraml
(224) 875-4493
PR@myriad.com

FAQ

What is the total value of restricted stock units granted to Myriad Genetics' new CCO in April 2025?

The total value of restricted stock units granted is $3.75 million, split between $2 million in time-based RSUs and $1.75 million in performance-based PSUs.

How will the time-based RSUs vest for MYGN's new chief commercial officer?

The time-based RSUs will vest in four equal installments over four years, with 25% vesting on each anniversary of the grant date.

When will the performance-based PSUs vest for Myriad Genetics' new executive?

The PSUs will vest in 25% increments upon achieving specific stock price targets, but no vesting can occur before the first employment anniversary.

How will MYGN determine the number of restricted stock units granted to Mr. Donnelly?

The number of units will be calculated based on Myriad Genetics' closing stock price on the Nasdaq Stock Market on April 30, 2025.