Unity awards CEO 880K performance-based stock units
Unity Software Inc. (U) reported that its President and CEO, serving as the reporting person, received a grant of 880,000 performance-based price vesting restricted stock units (PPSUs) under the company’s 2020 Equity Incentive Plan.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
4
Rhea-AI Filing Summary
Unity Software Inc. (U) reported that its President and CEO, serving as the reporting person, received a grant of 880,000 performance-based price vesting restricted stock units (PPSUs) under the company’s 2020 Equity Incentive Plan. Each PPSU can convert into one share of common stock for no cash consideration if both service and stock price hurdles are met; otherwise, unearned PPSUs are forfeited.
Insider Trade Summary
Grant/Award: 880,000 shares
Grant/Award
1 txn
Insider
Bromberg Matthew S
Role
President and CEO
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Grant/Award | Performance-Based Price Vesting Restricted Stock Units F1, F2, F3 | 880,000 | $0.00 | $0.00 |
Holdings After Transaction:
Performance-Based Price Vesting Restricted Stock Units — 880,000 contracts (Direct)
Footnotes (3)
- F1. Represents performance-based price vesting restricted stock units ("PPSUs") granted under the Issuer's 2020 Equity Incentive Plan. Each PPSU represents a contingent right to receive one share of the Issuer's common stock upon vesting, for no cash consideration. The number reported is the maximum number of PPSUs that may vest.
- F2. The PPSUs are eligible to vest in three tranches, in each case on the later of the date the applicable service condition is satisfied and the date the applicable stock price hurdle is achieved, subject to the Reporting Person's continued service as Chief Executive Officer of the Issuer through that later date. 293,333 PPSUs are subject to a $50.00 stock price hurdle and a service condition running through the first anniversary of the grant date; 293,333 PPSUs are subject to a $60.00 stock price hurdle and a service condition running through the second anniversary of the grant date; and 293,334 PPSUs are subject to a $75.00 stock price hurdle and a service condition running through the third anniversary of the grant date.
- F3. A stock price hurdle is achieved if the volume-weighted average closing price of the Issuer's common stock over any period of thirty consecutive calendar days equals or exceeds the applicable hurdle. Stock price hurdles may be achieved only during the performance period beginning on the grant date and ending on the fifth anniversary of the grant date. PPSUs for which the applicable stock price hurdle is not achieved during the performance period will be forfeited for no consideration.
Key Figures
PPSUs granted: 880,000 units
Underlying common stock: 880,000 shares
First tranche size and hurdle: 293,333 units; $50.00 stock price hurdle
+4 more
7 metrics
PPSUs granted
880,000 units
Maximum number of performance-based price vesting restricted stock units granted to the President and CEO
Underlying common stock
880,000 shares
Each PPSU represents a contingent right to receive one share of Unity common stock
First tranche size and hurdle
293,333 units; $50.00 stock price hurdle
First tranche with service condition through the first anniversary of the grant date
Second tranche size and hurdle
293,333 units; $60.00 stock price hurdle
Second tranche with service condition through the second anniversary of the grant date
Third tranche size and hurdle
293,334 units; $75.00 stock price hurdle
Third tranche with service condition through the third anniversary of the grant date
Performance period
From grant date to fifth anniversary
Window during which stock price hurdles can be achieved for PPSU vesting
VWAP measurement window
30 consecutive calendar days
Period over which volume-weighted average closing price must meet or exceed each stock price hurdle
Key Terms
Performance-Based Price Vesting Restricted Stock Units, volume-weighted average closing price, stock price hurdle, Equity Incentive Plan
4 terms
Performance-Based Price Vesting Restricted Stock Units financial
"Represents performance-based price vesting restricted stock units ("PPSUs") granted under the Issuer's 2020"
volume-weighted average closing price financial
"A stock price hurdle is achieved if the volume-weighted average closing price of the Issuer's"
The volume-weighted average closing price is the average of a security’s closing prices over a chosen period, where each day’s closing price is given more influence if more shares traded that day. Think of it like calculating the average price you paid for apples but counting each day’s basket size so large purchases matter more than small ones. Investors use it to see the fairer, trade-weighted trend of price movement and to reduce the skew from low-volume days.
stock price hurdle financial
"The PPSUs are eligible to vest in three tranches, in each case on the later of the date the applicable service condition is satisfied and the date the applicable stock price hurdle is achieved"
Equity Incentive Plan financial
"PPSUs granted under the Issuer's 2020 Equity Incentive Plan"
An equity incentive plan is a program that gives employees, executives or directors the right to receive company stock or options to buy stock as part of their pay. Think of it as offering slices of future company profit to motivate people to boost long‑term performance; for investors it matters because it can align employee goals with shareholder value but also increases the number of shares outstanding, which can dilute existing ownership.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What equity award did Unity Software Inc. (U) grant to its President and CEO?
Unity granted its President and CEO 880,000 performance-based price vesting restricted stock units (PPSUs). Each PPSU represents a contingent right to receive one share of Unity common stock for no cash consideration if specified vesting conditions are satisfied.
How are the 880,000 PPSUs for Unity Software Inc. (U) structured in tranches?
The 880,000 PPSUs are split into three tranches: 293,333, 293,333, and 293,334 units. Each tranche has a separate stock price hurdle and service period tied to the first, second, and third anniversaries of the grant date.
What stock price hurdles apply to the CEO’s PPSUs at Unity Software Inc. (U)?
The PPSUs have stock price hurdles of $50.00, $60.00, and $75.00 per share. Each hurdle must be met, along with a related service condition, for the corresponding tranche of units to vest into Unity common shares.
Over what period can Unity Software Inc. (U) stock price hurdles be achieved for these PPSUs?
Stock price hurdles can be achieved only during a performance period from the grant date until the fifth anniversary of that date. The price must meet or exceed each hurdle based on a 30-day volume-weighted average closing price.
What happens if Unity Software Inc. (U) does not meet the PPSU stock price hurdles?
Any PPSUs whose stock price hurdle is not achieved during the performance period are forfeited for no consideration. Vesting also requires the CEO to remain in service through the later of the service and price-hurdle satisfaction dates.
Does Unity Software Inc. (U) require cash payment for the CEO’s PPSU award?
No cash payment is required. Each PPSU represents a right to receive one share of Unity common stock for no cash consideration if the specified service and stock price conditions are satisfied within the defined performance period.
AI-generated analysis. How Rhea-AI works. Not financial advice.
