RxSight (NASDAQ: RXST) reported that on July 24, 2026 it granted inducement equity awards to new President and CEO Aziz Mottiwala in connection with his employment. The awards include stock options for 571,286 shares at an exercise price of $5.19 and RSUs covering 2,312,138 shares.
The options vest 25% on the one-year anniversary of July 24, 2026, with the remainder vesting in equal monthly installments over the following three years. The RSUs vest 20% on each of the first two anniversaries and 60% on the third anniversary. The grants were made under the 2026 Inducement Equity Incentive Plan pursuant to Nasdaq Listing Rule 5635(c)(4).
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Positive
571,286 stock options granted at $5.19, equal to grant-date closing price
Time-based vesting over four years for options supports long-term leadership retention
RSU grant covering 2,312,138 shares vests over three years, aligning CEO with shareholder value
Awards made under 2026 Inducement Equity Incentive Plan in compliance with Nasdaq Rule 5635(c)(4)
Negative
Large equity awards of over 2.8 million shares represent significant share-based compensation over time
News Explained
The grant creates a staged path to additional shares, so existing holders face potential ownership dilution rather than immediate issuance of all covered shares.
RxSight granted the awards on July 24, 2026 in connection with the CEO’s commencement, so this is a completed grant rather than a proposed award; its mechanics create a future path to additional common shares that can reduce existing holders’ ownership percentage if shares vest or options are exercised.
The 571,286 options require exercise at $5.19 per share and vest in stages beginning with 25% after one year, making their share issuance conditional on exercise.
The 2,312,138 RSUs vest 20% at each of the first two anniversaries and 60% at the third, making those shares contingent on the stated vesting schedule.
Market Context
DCTH was down -1.77% and BFLY -2.23% in the peer snapshot, placing the grant disclosure within a mix...
Analysis
DCTH was down -1.77% and BFLY -2.23% in the peer snapshot, placing the grant disclosure within a mixed medical-device tape. Multi-year vesting limits immediacy, while moderate short positioning remained a volatility risk.
Key Figures
Inducement stock options:571,286 sharesInducement RSUs:2,312,138 sharesExercise price:$5.19 per share+5 more
8 metrics
Inducement stock options571,286 sharesGranted July 24, 2026
Inducement RSUs2,312,138 sharesGranted to the new CEO
Exercise price$5.19 per shareEqual to the closing price on the grant date
Option first vesting tranche25%Vests on the one-year anniversary
Monthly option vesting1/48thVests monthly after the first-year tranche
RSU first vesting tranche20%Vests on the one-year anniversary
RSU second vesting tranche20%Vests on the two-year anniversary
RSU final vesting tranche60%Vests on the three-year anniversary
Q1 revenue declined year over year and the company reported a net loss
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Pattern Detected
Historical reactions were mixed: the Q1 results aligned with a selloff, collaboration news produced a small gain, and conference participation diverged from the neutral event.
"granted inducement stock options to purchase a total of 571,286 shares"
Inducement stock options are grants of the company’s stock rights given to recruit or retain a specific executive or employee, often as a signing bonus instead of cash. Investors care because these awards can increase the total shares outstanding and dilute existing ownership, alter future reported expenses, and signal how the company is paying for talent; think of them as a hiring incentive paid in future company pieces rather than immediate money.
restricted stock unitsfinancial
"inducement restricted stock units (RSUs) covering a total of 2,312,138 shares"
Restricted stock units are a type of company reward where employees are promised shares of stock, but they only fully own these shares after meeting certain conditions, like staying with the company for a set time. They matter because they can become valuable assets and are often used to motivate employees to help the company succeed.
vestingfinancial
"The inducement stock options have an exercise price of $5.19 per share"
Vesting is the process by which you earn full ownership of something, like company stock or a retirement benefit, over time. It’s like earning the right to keep a gift piece by piece the longer you stay with a company, making sure employees stay committed before they receive all the benefits.
Nasdaq Listing Rule 5635(c)(4)regulatory
"in accordance with Nasdaq Listing Rule 5635(c)(4)"
NASDAQ Listing Rule 5635(c)(4) is a rule that requires a company to get approval from its shareholders before selling a large amount of its shares, usually over 20%. This helps protect investors by making sure the company doesn't flood the market with new shares without their say, which could lower the stock's value.
ALISO VIEJO, Calif., July 26, 2026 (GLOBE NEWSWIRE) -- RxSight, Inc. (NASDAQ: RXST) today announced that on July 24, 2026, RxSight granted inducement stock options to purchase a total of 571,286 shares of RxSight’s common stock and inducement restricted stock units (RSUs) covering a total of 2,312,138 shares of RxSight’s common stock to Aziz Mottiwala, RxSight’s new President and Chief Executive Officer in connection with his commencement of employment with RxSight.
The inducement stock options have an exercise price of $5.19 per share, which is equal to the closing price of a share of RxSight common stock on the grant date, and shall vest as follows: 25% of the shares subject to such inducement stock option shall vest on the one year anniversary of July 24, 2026, and one forty-eighth (1/48th) of the shares subject to such inducement stock option shall vest monthly thereafter.
The inducement RSU award shall vest as follows: 20% of the shares subject to the inducement RSU award shall vest on the one year anniversary of July 24, 2026, 20% of the shares subject to the inducement RSU award shall vest on the two-year anniversary of such date, and 60% of the shares subject to the inducement RSU award shall vest on the three-year anniversary of such date.
Each inducement award is subject to the terms of the RxSight, Inc. 2026 Inducement Equity Incentive Plan and related forms of agreements, and were granted as inducements material to Mr. Mottiwala to enter into employment with RxSight in accordance with Nasdaq Listing Rule 5635(c)(4).
About RxSight, Inc.
RxSight, Inc. is an ophthalmic medical device company dedicated to providing high-quality customized vision to patients following cataract surgery. The RxSight Light Adjustable Lens system, comprised of the RxSight Light Adjustable Lens (LAL/LAL+, collectively the “LAL”), RxSight Light Delivery Device (LDD) and accessories, is the first and only commercially available intraocular lens (IOL) technology that can be adjusted after surgery, enabling doctors to customize and deliver high-quality vision to patients after cataract surgery. Additional information about RxSight can be found at www.rxsight.com.
Investor Relations Contact: Oliver Moravcevic VP, Investor Relations omoravcevic@rxsight.com
FAQ
What inducement equity awards did RxSight (NASDAQ: RXST) grant to CEO Aziz Mottiwala on July 24, 2026?
RxSight granted Aziz Mottiwala stock options for 571,286 shares and RSUs covering 2,312,138 shares. According to RxSight, these inducement awards were granted in connection with his employment commencement as President and Chief Executive Officer and are governed by the 2026 Inducement Equity Incentive Plan.
What are the vesting terms of the RxSight (RXST) inducement stock options granted to Aziz Mottiwala?
The inducement stock options vest 25% on the one-year anniversary of July 24, 2026, then monthly. According to RxSight, the remaining 75% of option shares vest in equal monthly installments over the following three years, totaling a four-year vesting schedule from the grant date.
How do the RxSight (RXST) inducement RSUs for Aziz Mottiwala vest over three years?
The inducement RSUs vest 20% after one year, 20% after two years, and 60% after three years. According to RxSight, these percentages apply to the 2,312,138 RSUs, all tied to anniversaries of July 24, 2026, subject to the applicable award agreements.
What is the exercise price of RxSight (RXST) inducement stock options granted in July 2026 and how was it set?
The inducement stock options have an exercise price of $5.19 per share, matching the grant-date close. According to RxSight, $5.19 equaled the closing price of RxSight common stock on July 24, 2026, the option grant date.
Under which equity plan and Nasdaq rule were RxSight (RXST) July 2026 inducement grants made?
The inducement awards were granted under the RxSight 2026 Inducement Equity Incentive Plan. According to RxSight, the options and RSUs for Aziz Mottiwala were approved as inducements material to employment, consistent with Nasdaq Listing Rule 5635(c)(4) requirements.
Why did RxSight (RXST) grant inducement equity awards to Aziz Mottiwala as CEO?
RxSight granted these equity awards as inducements material to Aziz Mottiwala entering employment as CEO. According to RxSight, the stock options and RSUs are structured to support his recruitment and align his interests with the company over multi-year vesting schedules.
