Red Cat CEO granted 1M stock options
Red Cat Holdings, Inc. Chairman and CEO Jeffrey M. Thompson received a grant of employee stock options covering 1,000,000 shares of common stock.
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Form Type
4
Rhea-AI Filing Summary
Red Cat Holdings, Inc. Chairman and CEO Jeffrey M. Thompson received a grant of employee stock options covering 1,000,000 shares of common stock. The options have a $6.73 exercise price and were granted in lieu of a base salary and participation in the traditional bonus plan.
The grant vests over three years: 50% on the first anniversary of the grant date, 25% on the second, and 25% on the third. Following this grant, Thompson holds options for 1,000,000 shares directly, with the options expiring on May 22, 2035.
Insider Trade Summary
Grant/Award: 1,000,000 shares
Grant/Award
1 txn
Insider
Thompson Jeffrey M
Role
Chairman of the Board, CEO
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Grant/Award | Employee Stock Option (right to buy) | 1,000,000 | $0.00 | $0.00 |
Holdings After Transaction:
Employee Stock Option (right to buy) — 1,000,000 contracts (Direct)
Footnotes (1)
- F1. The reporting person was granted an option to purchase up to 1,000,000 shares of the Issuers common stock in lieu of receiving a base salary and participating in the Issuers traditional bonus plan. The option vests as follows: 50% on the first anniversary of the grant date, 25% on the second anniversary of the grant date, and 25% on the third anniversary of the grant date.
Key Figures
Option grant size: 1,000,000 options
Exercise price: $6.73 per share
Total options after grant: 1,000,000 options
+3 more
6 metrics
Option grant size
1,000,000 options
Employee stock option grant to CEO on May 22, 2025
Exercise price
$6.73 per share
Exercise price for 1,000,000 employee stock options
Total options after grant
1,000,000 options
Total derivative holdings following transaction, direct ownership
Expiration date
May 22, 2035
Option expiration for 1,000,000 employee stock options
Vesting year 1
50% of grant
Vests on first anniversary of grant date
Vesting years 2 and 3
25% + 25% of grant
Vests on second and third anniversaries of grant date
Key Terms
Employee Stock Option, exercise price, vesting, bonus plan, +1 more
5 terms
Employee Stock Option financial
"The reporting person was granted an option to purchase up to 1,000,000 shares"
An employee stock option is a promise that lets a worker buy company shares later at a predetermined price, often after they stay for a certain period or meet performance goals — think of it like a coupon that locks in today's price for a future purchase. It matters to investors because options align employees’ incentives with company performance, can increase the number of shares outstanding (dilution) when exercised, and represent a compensation cost that affects reported profits and shareholder value.
exercise price financial
"conversion_or_exercise_price: 6.7300"
The exercise price is the fixed amount at which you can buy or sell an asset, like a stock, when using an options contract. It matters because it helps determine whether exercising the option will be profitable or not, depending on the current market price. Think of it as the set price you agree on today to buy or sell later.
vesting financial
"The option vests as follows: 50% on the first anniversary of the grant date"
Vesting is the process by which you earn full ownership of something, like company stock or a retirement benefit, over time. It’s like earning the right to keep a gift piece by piece the longer you stay with a company, making sure employees stay committed before they receive all the benefits.
bonus plan financial
"in lieu of receiving a base salary and participating in the Issuers traditional bonus plan"
expiration date financial
"expiration_date: 2035-05-22T00:00:00.000Z"
The expiration date is the deadline after which a financial contract, such as an option or a futures agreement, is no longer valid or can be exercised. It matters to investors because it determines the timeframe during which they can take action or benefit from the contract, similar to how a coupon or a food item has a limited period of usefulness. Once the expiration date passes, the contract loses its value or ability to be used.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What insider transaction did Red Cat Holdings (RCAT) report for its CEO?
Red Cat Holdings reported its CEO Jeffrey M. Thompson received employee stock options for 1,000,000 shares. The options serve as compensation in lieu of base salary and traditional bonus participation, aligning a significant portion of his pay with future company share performance.
What is the exercise price of the new RCAT stock options granted to the CEO?
The new options granted to the CEO carry a $6.73 per share exercise price. This means he can buy Red Cat common stock at $6.73 if the options vest and are exercised before expiration, directly tying potential value to future stock prices.
How do the RCAT CEO’s 1,000,000 stock options vest over time?
The 1,000,000 options vest in three tranches over three years. Half vests on the first anniversary of the grant date, with 25% vesting on the second anniversary and the remaining 25% on the third, encouraging longer-term retention and performance.
When do the newly granted Red Cat (RCAT) CEO stock options expire?
The options granted to the CEO expire on May 22, 2035. He can exercise vested portions any time before that expiration date, subject to applicable company policies and securities rules, giving a long-dated incentive window tied to future stock performance.
Is the Red Cat CEO still receiving a base salary or traditional bonus under this arrangement?
According to the disclosure, the CEO received this option grant in lieu of base salary and participation in the traditional bonus plan. This shifts his compensation mix toward equity-based incentives instead of regular cash salary and bonus payments.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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