The Simply Good Foods Company Reports CEO Inducement Grant Under Nasdaq Listing Rule 5635(c)(4)
The Simply Good Foods Company (NASDAQ: SMPL) announced that Joseph E. Scalzo joined as President and Chief Executive Officer effective January 19, 2026.
Rhea-AI Summary
The Simply Good Foods Company (NASDAQ: SMPL) announced that Joseph E. Scalzo joined as President and Chief Executive Officer effective January 19, 2026. In connection with his appointment, the company granted Mr. Scalzo a stock option to purchase 2,000,000 shares of common stock at an exercise price equal to fair market value on the grant date. The option has an 8-year term and vests over a three-year period with ~one-third vesting annually on the anniversary of his start date, subject to continued employment or certain termination events that may allow continued vesting and exercisability. The grant was made as an inducement material to his commencing employment and is disclosed under Nasdaq Listing Rule 5635(c)(4).
Positive
- CEO appointment effective Jan 19, 2026
- Equity package: 2,000,000 share option grant
- Option term of 8 years provides long-term retention
- Vesting structure: 3-year schedule with ~one-third annually
Negative
- Potential shareholder dilution from 2,000,000 share option
- Continued vesting on certain termination events may retain option value
Details
News Market Reaction – SMPL
On Jan 23, the day this news came out, SMPL closed 2.97% below the previous close.
Data tracked by StockTitan Argus for the Jan 23 session.
Key Figures
- CEO option grant
- 2,000,000 shares
- Inducement stock option to purchase common stock
- Option term
- 8 years
- CEO inducement stock option duration
- Vesting period
- 3 years
- Option vests over three-year period
- Annual vesting rate
- Approximately one-third
- Portion of option vesting each anniversary date
- Listing rule
- Nasdaq Rule 5635(c)(4)
- Basis for inducement grant disclosure
Historical Context
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Reappointment of former CEO Joe Scalzo with focus on growth and profitability.
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Atkins and Heather Gay partnership highlighting GLP‑1 nutrition pilot trial results.
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Q1 2026 flat sales but notably lower income, margins and EBITDA versus prior year.
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Quest Protein Chips new flavors and expanded distribution across major retailers.
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Announcement of upcoming Q1 FY26 results release and conference call logistics.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
nasdaq listing rule 5635(c)(4) regulatory
stock option financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
DENVER, Jan. 23, 2026 (GLOBE NEWSWIRE) -- On January 20, 2026, The Simply Good Foods Company (NASDAQ: SMPL) (“Simply Good Foods” or the “Company”) announced that Joseph E. Scalzo joined the Company in the role of President and Chief Executive Officer, effective January 19, 2026. Pursuant to the terms of his employment agreement, on January 19, 2026 and in connection with Mr. Scalzo’s appointment, the Company granted to Mr. Scalzo an option to purchase 2,000,000 shares of the Company's common stock, with an exercise price equal to the fair market value of a share of the Company’s common stock on the date of grant. The stock option has an 8-year term and vests over a three-year period, with approximately one-third vesting each year on the anniversary date of his start date, subject to Mr. Scalzo’s continued employment on the scheduled vesting dates or the occurrence of certain termination of employment events, in which case, the terms of his employment agreement provide for continued vesting and exercisability of the stock option.
The stock option grant was awarded as an inducement material to Mr. Scalzo’s commencing employment with the Company, and this information is being provided pursuant to the requirements of Nasdaq Listing Rule 5635(c)(4).
About The Simply Good Foods Company
The Simply Good Foods Company (Nasdaq: SMPL), headquartered in Denver, Colorado, is a consumer-packaged food and beverage company with ambitious goals to raise the bar on what food can be with trusted brands and innovative nutritious snacking products. Within our portfolio of trusted brands (Quest™, Atkins™, and OWYN™), we offer a wide variety of nutritional snacks and beverages, including high protein chips, bars, ready-to-drink (RTD) shakes, and powders, and low sugar, low carb sweets and baked goods. We are a leader of the nutritious snacking movement, poised to expand our healthy lifestyle platform through innovation-driven organic growth and external investment opportunities. To learn more, visit www.thesimplygoodfoodscompany.com.
Investor Contact
Joshua Levine
Vice President, Investor Relations and Treasury
The Simply Good Foods Company
jlevine@simplygoodfoodsco.com
FAQ
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