Sleep Number Announces Inducement Grant Under Nasdaq Listing Rule 5635(c)(4)

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Key Terms

restricted stock unit financial

A restricted stock unit is a promise from a company to give an employee shares of stock after certain conditions are met, like staying with the company for a set amount of time. It’s like earning a bonus that turns into company stock once you’ve proven your commitment, making it a way to motivate and reward employees.

equity incentive plan financial

An equity incentive plan is a program that gives employees, executives or directors the right to receive company stock or options to buy stock as part of their pay. Think of it as offering slices of future company profit to motivate people to boost long‑term performance; for investors it matters because it can align employee goals with shareholder value but also increases the number of shares outstanding, which can dilute existing ownership.

12/15/2025 - 04:01 PM

MINNEAPOLIS--(BUSINESS WIRE)-- Sleep Number Corporation (Nasdaq: SNBR) today announced that it granted an equity award on December 15, 2025, as a material inducement to the employment of the company's newly-hired Executive Vice President and Chief Financial Officer, Amy O’Keefe.

As previously disclosed, in connection with the appointment of O’Keefe as Executive Vice President and Chief Financial Officer effective December 8, 2025, Sleep Number granted O’Keefe an employment inducement award consisting of 69,742 shares in a time-vested restricted stock unit award that vests in three equal installments on each anniversary from the date of grant. The grants are subject to continued employment and the terms of the award agreement.

This inducement award to O’Keefe was granted as a material inducement to her employment and was approved by the Sleep Number Board of Directors on November 28, 2025, in accordance with Rule 5635(c)(4) of The Nasdaq Stock Market LLC. The award was granted outside Sleep Number’s equity incentive plan.

About Sleep Number Corporation

Sleep Number is a sleep wellness company. We are guided by our purpose to improve lives by personalizing sleep; to date, our innovations have improved 16 million lives. Our sleep wellness platform helps solve sleep problems, whether it’s providing individualized temperature control for each sleeper through our Climate360® smart bed or applying our 36 billion hours of longitudinal sleep data and expertise to research with global institutions. Our smart bed ecosystem drives best-in-class engagement through dynamic, adjustable, and effortless sleep with personalized sleep and health insights; our millions of Smart Sleepers are loyal brand advocates. And our 3,200 mission-driven team members passionately innovate to drive value creation through our vertically integrated business model, including our exclusive direct-to-consumer selling in 611 stores and online.

To learn more about life-changing, individualized sleep, visit a Sleep Number® store near you, our investor relations site, or SleepNumber.com.