Health In Tech insider grant links CEO pay to product launch milestones
Rhea-AI Filing Summary
Tim Johnson, the Chief Executive Officer, Director and 10% owner of Health In Tech, Inc. (HIT), was granted 34,000 restricted shares of Class A Common Stock on 08/15/2025. The shares were granted at $0 and are subject to performance-based vesting tied to the successful launch and full operation of two specified company programs: 50% vest monthly over 12 months after the first program is launched and operational, and the remaining 50% vest monthly over 12 months after the second program is launched and operational. After this grant the reporting person beneficially owns 22,469,741 shares, which the filing clarifies includes 62,193 restricted shares and 22,407,548 Class A shares and expressly excludes 9,000,000 Class B shares and 734,707 options to purchase Class A shares.
Positive
- Performance-based vesting ties the restricted stock grant to the successful launch and full operation of two specified company programs
- Granted shares at $0 are restricted rather than immediately sold, aligning CEO incentives with company milestones
Negative
- Beneficial ownership reporting excludes 9,000,000 Class B shares and 734,707 options, which may complicate simple Class A ownership interpretation
- Vesting contingent on future events means the shares are not presently vested and depend on unspecified program launch timing
Insights
TL;DR: CEO received a performance-vested grant of 34,000 restricted Class A shares tied to product launches, modest relative to total holdings.
The grant is structured as restricted stock with vesting contingent on two specified programs becoming launched and fully operational. This design aligns management incentives with operational milestones rather than immediate cash compensation. The reported post-grant beneficial ownership totals 22,469,741 shares, with the filing explicitly separating Class A, Class B, restricted shares and options. Given the size of the grant relative to total reported holdings, the immediate dilution or change in control economics appears limited based on the disclosed numbers.
TL;DR: Grant ties executive compensation to operational milestones, reflecting governance focus on performance-based incentives.
The restricted share award vests only upon achievement of defined operational milestones, which is a governance mechanism to link pay to performance. The filing discloses the composition of the reporting person's holdings and explicitly excludes substantial Class B shares and outstanding options from the Class A beneficial ownership count, providing clarity on capital structure components relevant to control and voting discussions.