Teladoc Health Announces Employee Inducement Awards under NYSE Rule 303A.08

Rhea-AI Summary

Teladoc Health (NYSE:TDOC) has announced the issuance of inducement awards to 21 new employees following its acquisition of Catapult Health on February 28, 2025. The awards include:

- 19 Catapult Health employees received 365,282 restricted stock units and 324,270 performance stock units

- 2 additional non-executive employees received 155,523 restricted stock units and 125,523 performance stock units (with potential earnings up to 251,046 shares)

The restricted stock units vest over 2-3 years based on continued service. Performance stock units are tied to various financial and operational metrics of both companies. These awards were approved by the Compensation Committee under the 2023 Employment Inducement Incentive Award Plan, complying with NYSE Rule 303A.08.

Positive

• Strategic acquisition of Catapult Health completed
• Retention incentives in place for key acquired employees
• Performance-based compensation structure aligned with company goals

Negative

• Potential dilution from 970,598 new shares (combined RSUs and PSUs)
• Additional stock-based compensation expenses

PURCHASE, NY, March 05, 2025 (GLOBE NEWSWIRE) -- Teladoc Health, Inc. (NYSE:TDOC), the global leader in virtual care, today announced that it issued inducement awards to 21 new employees.

Effective February 28, 2025 and March 1, 2025, in connection with the acquisition of Catapult Health on February 28, 2025, 19 employees of Catapult Health were granted awards of restricted stock units covering an aggregate of 365,282 shares of Teladoc Health’s common stock, par value $0.001 per share (“Common Stock”), and awards of performance stock units covering a target of 324,270 shares of Common Stock. The restricted stock units vest, based on continued service to Teladoc Health, over two or three years. The performance stock units provide a target number of shares of Common Stock that would be earned over two years based on various financial and operational metrics of Catapult Health and Teladoc Health.

Also, effective March 1, 2025, in connection with commencing employment, two additional new non-executive employees of Teladoc Health were granted awards of restricted stock units covering an aggregate of 155,523 shares of Common Stock and awards of performance stock units covering a target of 125,523 shares of Common Stock (for which up to 251,046 shares may be earned). The restricted stock units vest, based on continued service to Teladoc Health, as to one-third of the underlying shares on the first anniversary of the grant date, with the remainder vesting quarterly over two years thereafter. The performance stock units provide a target number of shares of Common Stock that would be earned over three years based on various financial metrics.

The awards were approved by the Compensation Committee of the Board of Directors of Teladoc Health and were granted under the Teladoc Health, Inc. 2023 Employment Inducement Incentive Award Plan as employment inducement awards pursuant to New York Stock Exchange Rule 303A.08.

About Teladoc Health

Teladoc Health empowers all people everywhere to live their healthiest lives by transforming the healthcare experience. As the world leader in virtual care, Teladoc Health uses proprietary health signals and personalized interactions to drive better health outcomes across the full continuum of care, at every stage in a person’s health journey. Teladoc Health leverages more than two decades of expertise and data-driven insights to meet the growing virtual care needs of consumers and healthcare professionals. For more information, please visit www.teladochealth.com

FAQ

How many shares were awarded in Teladoc's (TDOC) latest inducement grants?

Teladoc awarded a total of 520,805 restricted stock units and 449,793 performance stock units (target) to 21 employees.

What is the vesting schedule for TDOC's March 2025 inducement awards?

For most awards, restricted stock units vest over 2-3 years, with non-executive employees vesting one-third after first year and quarterly over two years thereafter.

How many Catapult Health employees received TDOC stock awards in the February 2025 acquisition?

19 Catapult Health employees received stock awards following the acquisition.

What is the maximum number of shares that can be earned through TDOC's performance stock units for the new non-executive employees?

The two non-executive employees can earn up to 251,046 shares through their performance stock units.