ESAB grants 1.2M performance options to chair
ESAB Corp reported that Executive Chair of the Board Mitchell P. Rales received a grant of 1,200,000 stock options on June 10, 2026.
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Form Type
4
Rhea-AI Filing Summary
ESAB Corp reported that Executive Chair of the Board Mitchell P. Rales received a grant of 1,200,000 stock options on June 10, 2026. These performance stock options have an exercise price of $82.92 per share and expire on June 9, 2033.
The options become exercisable, if at all, in three tranches. Vesting depends on ESAB’s simple average closing share price on the NYSE exceeding specified stock price hurdles over any 30-day trailing period during a four-year window starting on the second anniversary of the grant, plus his continued employment through the fourth, fifth and sixth anniversaries and the company’s certification of the price hurdles.
Insider Trade Summary
Grant/Award: 1,200,000 shares
Grant/Award
1 txn
Insider
RALES MITCHELL P
Role
Executive Chair of Board
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Grant/Award | Stock Option (right to buy) | 1,200,000 | $0.00 | $0.00 |
Holdings After Transaction:
Stock Option (right to buy) — 1,200,000 contracts (Direct)
Footnotes (1)
- F1. On June 10, 2026, the Issuer granted to the Reporting Person a performance stock option in connection with his appointment as Executive Chair of the Board of the Issuer. The option becomes exercisable, if at all, in three tranches subject to (A) the simple average closing prices of the Issuer's common stock on the NYSE during any 30-trailing day period exceeding certain stock price hurdles during the four-year period commencing on the second anniversary of the grant date and ending on the sixth anniversary of the grant date and (B) the Reporting Person's continued employment with the Issuer through the later of the fourth, fifth and sixth anniversary of the grant date, respectively, and the Company's certification of achievement of a stock price hurdle.
Key Figures
Performance stock options granted: 1,200,000 options
Option exercise price: $82.92 per share
Expiration date: June 9, 2033
+2 more
5 metrics
Performance stock options granted
1,200,000 options
Grant to Executive Chair on June 10, 2026
Option exercise price
$82.92 per share
Strike price for granted options
Expiration date
June 9, 2033
Option term end for the grant
Underlying common stock
1,200,000 shares
Common stock issuable upon exercise
Vesting window
Years 2–6 after grant
Four-year period starting second anniversary
Key Terms
performance stock option, simple average closing prices, stock price hurdles, tranches, +1 more
5 terms
performance stock option financial
"the Issuer granted to the Reporting Person a performance stock option in connection with his appointment"
simple average closing prices financial
"the simple average closing prices of the Issuer's common stock on the NYSE during any 30-trailing day period"
stock price hurdles financial
"exceeding certain stock price hurdles during the four-year period"
"Stock price hurdles" are specific price levels that investors watch closely because reaching them can signal a potential change in the stock's future. Think of them like checkpoints in a video game; once the stock hits these levels, it might trigger new buying or selling activity, affecting whether the price goes up or down.
tranches financial
"The option becomes exercisable, if at all, in three tranches subject to (A) the simple average closing prices"
Tranches are portions or slices of a larger financing deal—such as a loan, bond issue, or equity round—that are released at different times or under different conditions. For investors they matter because each tranche can carry different risk, interest or payout terms and may be paid only if certain targets are met; think of funding as slices of a cake handed out as progress is made.
continued employment financial
"subject to ... the Reporting Person's continued employment with the Issuer through the later of the fourth, fifth and sixth anniversary"
Continued employment means that an individual remains in their current job without interruption. For investors, it signals stability and ongoing work that can affect company performance and future prospects. Like a steady heartbeat for a business, sustained employment helps ensure consistent operations and financial health.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What did ESAB (ESAB) disclose about Mitchell Rales in this Form 4?
ESAB disclosed that Executive Chair Mitchell P. Rales received a grant of 1,200,000 performance stock options. The options are compensation, not an open-market purchase, and their vesting depends on future stock price performance and continued employment conditions.
How many ESAB stock options were granted to Mitchell Rales and at what price?
Mitchell P. Rales was granted 1,200,000 stock options for ESAB common stock. The options carry an exercise price of $82.92 per share, meaning he can buy shares at that price if vesting and other conditions are met in the future.
When do Mitchell Rales’s ESAB performance stock options expire?
The performance stock options granted to Mitchell P. Rales expire on June 9, 2033. If vesting hurdles are not met or the options are not exercised before that date, they will lapse and no longer permit the purchase of ESAB common shares.
What performance conditions apply to ESAB’s option grant to Mitchell Rales?
The options vest in three tranches only if ESAB’s simple average closing price on the NYSE over any 30-day trailing period exceeds specified stock price hurdles, during a defined four-year window. Vesting also requires continued employment and company certification of hurdle achievement.
Over what time period can ESAB’s stock price hurdles be achieved for this option grant?
The stock price hurdles for Mitchell Rales’s performance stock options can be achieved during the four-year period starting on the second anniversary of the June 10, 2026 grant and ending on the sixth anniversary, subject to the company certifying the achievement of each hurdle.
Is continued employment a requirement for Mitchell Rales’s ESAB options to vest?
Yes. For each tranche of the performance stock options to become exercisable, Mitchell P. Rales must remain employed by ESAB through the later of the fourth, fifth, and sixth anniversaries of the grant date, alongside the company certifying that applicable stock price hurdles were met.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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