Viasat Announces Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Viasat (NASDAQ: VSAT) has announced the granting of equity awards to Gary Chase, the company's new Senior Vice President and Chief Financial Officer, as part of his employment inducement package. The Board of Directors approved the following grants on September 16, 2024:

- 265,685 restricted stock units (RSUs)
- 59,199 performance-based restricted stock units (PSUs)

These awards were granted under Viasat's 2024 Employment Inducement Incentive Award Plan, in compliance with Nasdaq Listing Rule 5635(c)(4). The RSUs have different vesting schedules, while the PSUs will vest after a three-year performance period, with the actual number of units earned ranging from 0% to 175% of the target, based on Viasat's relative total shareholder return performance against the Russell 3000 Index.

Positive

• Appointment of a new Senior VP and CFO, Gary Chase, potentially bringing fresh leadership to the finance department
• Implementation of a performance-based incentive structure for the new CFO, aligning executive compensation with shareholder interests
• Use of both time-based (RSUs) and performance-based (PSUs) equity awards, promoting both retention and performance

Negative

• Potential dilution of existing shareholders due to the issuance of new equity awards
• Significant upfront equity compensation package for the new CFO, which may impact the company's expenses

CARLSBAD, Calif., Sept. 17, 2024 /PRNewswire/ -- Viasat (NASDAQ: VSAT), a global leader in satellite communications, today announced that on September 16, 2024, the Board of Directors of Viasat, including a majority of the independent directors, granted 265,685 restricted stock units ("RSUs") and 59,199 performance-based restricted stock units ("PSUs") (assuming achievement at "target" levels of performance), to Gary Chase, the Company's Senior Vice President and Chief Financial Officer, under the Company's 2024 Employment Inducement Incentive Award Plan (the "Inducement Plan"). The RSUs and PSUs were granted as inducements material to Mr. Chase upon entering into employment with Viasat in accordance with Nasdaq Listing Rule 5635(c)(4).

The Inducement Plan is used exclusively for the grant of equity awards to individuals who were not previously employees of Viasat, or following a bona fide period of non-employment, as an inducement material to such individuals entering into employment with Viasat, pursuant to Nasdaq Listing Rule 5635(c)(4).

78,143 of the RSUs will vest in three equal annual installments beginning with the first anniversary of the grant date, subject to continued service through each applicable vesting date.  187,542 of the RSUs will vest in three equal installments occurring on February 17, 2025, 2026 and 2027. The PSUs will vest on the third anniversary of the grant date and following a three-year performance period, subject to continued service through the vesting date.  Actual earned PSUs can range from 0%-175% of the "target" number of PSUs and will be based on Viasat's relative total shareholder return performance against the companies that comprise the Russell 3000 Index. The RSUs and PSUs are subject to the terms and conditions of the Inducement Plan and the terms and conditions of award agreements covering the grants.

About Viasat

Viasat is a global communications company that believes everyone and everything in the world can be connected. With offices in 24 countries around the world, our mission shapes how consumers, businesses, governments and militaries around the world communicate and connect. Viasat is developing the ultimate global communications network to power high-quality, reliable, secure, affordable, fast connections to positively impact people's lives anywhere they are—on the ground, in the air or at sea, while building a sustainable future in space. In May 2023, Viasat completed its acquisition of Inmarsat, combining the teams, technologies and resources of the two companies to create a new global communications partner. Learn more at www.viasat.com, the Viasat News Room or follow us on Facebook, Instagram, LinkedIn, X or YouTube. 

View original content:https://www.prnewswire.com/news-releases/viasat-announces-inducement-grants-under-nasdaq-listing-rule-5635c4-302250850.html

SOURCE Viasat, Inc.

FAQ

How many RSUs and PSUs did Viasat (VSAT) grant to its new CFO?

Viasat granted 265,685 restricted stock units (RSUs) and 59,199 performance-based restricted stock units (PSUs) to Gary Chase, the new Senior VP and CFO, on September 16, 2024.

What is the vesting schedule for the RSUs granted by Viasat (VSAT)?

78,143 RSUs will vest in three equal annual installments starting from the first anniversary of the grant date. The remaining 187,542 RSUs will vest in three equal installments on February 17, 2025, 2026, and 2027.

How are the PSUs granted by Viasat (VSAT) determined and when do they vest?

The PSUs will vest on the third anniversary of the grant date. The actual number of PSUs earned can range from 0% to 175% of the target, based on Viasat's relative total shareholder return performance against the Russell 3000 Index over a three-year performance period.

Under which plan were these equity awards granted by Viasat (VSAT)?

The equity awards were granted under Viasat's 2024 Employment Inducement Incentive Award Plan, in compliance with Nasdaq Listing Rule 5635(c)(4).