Benefitfocus Announces Inducement Grant Under NASDAQ Listing Rule 5635(C)(4)
May 07 2021 - 4:05PM
Benefitfocus, Inc. (NASDAQ: BNFT), an industry-leading benefits
technology platform that simplifies benefits administration for
employers, health plans and brokers, announces that, in connection
with the appointment of Matthew Levin as president and chief
executive officer, and in accordance with the terms of his
employment agreement with the Company, Benefitfocus’ board of
directors approved an initial equity grant to Mr. Levin consisting
of 70% restricted stock units (“RSUs”) and 30% performance stock
units (“PSUs”) with a total value of $5,000,000, totaling 248,826
RSUs and 106,640 PSUs (the “Initial Grant”).
The Initial Grant has three purposes: to
compensate Mr. Levin for the forgone awards from Mr. Levin’s
previous employment; to create further alignment between Mr. Levin
and our public shareholders through a performance-based award with
vesting based on strong stock price performance; and to retain and
motivate Mr. Levin’s performance over the next several years
through an additional retention-based award; in all cases, subject
to Mr. Levin continuing with Benefitfocus through the applicable
vesting dates.
The RSU portion of the Initial Grant will vest
in four equal annual installments beginning on the first
anniversary of Mr. Levin’s start date, which is expected on May 10,
2021 (the “Start Date”). The PSU portion of the Initial Grant
will vest in a single installment if the Company achieves a stock
price milestone after the second anniversary of the Start Date and
prior to the fifth anniversary of the Start Date, subject to a
minimum service requirement of three years by Mr. Levin.
The Initial Grant was made as a material
inducement to Mr. Levin becoming an employee of Benefitfocus in
accordance with Nasdaq Listing Rule 5635(c)(4). The RSUs and PSUs
are subject to the terms and conditions of the grant agreements
covering each grant.
About Benefitfocus Benefitfocus (NASDAQ:
BNFT) unifies the entire benefits industry through innovative
technology solutions that bring efficiency, cost savings and
simplicity to employee benefits administration. Our powerful
cloud-based software, data-driven insights and
thoughtfully designed services help employers, insurance
brokers, health plans and suppliers address the complexity of
benefits enrollment and engagement, while bringing easier access to
health, wealth and lifestyle products through a world-class
benefits experience. Our mission is simple: to improve lives
with benefits. Learn more
at www.benefitfocus.com, LinkedIn and Twitter.
DISCLAIMER REGARDING FORWARD LOOKING
STATEMENTSExcept for historical information, all of the
statements, expectations, and assumptions contained in this press
release are forward-looking statements. Actual results might differ
materially from those explicit or implicit in the forward-looking
statements. Important factors that could cause actual results to
differ materially include: our ability to maintain our culture and
recruit, integrate and retain qualified personnel, including on our
board of directors; our ability to compete effectively; the
need to innovate and provide useful products and services; risks
related to changing healthcare and other applicable regulations;
the immature and volatile nature of the market for our products and
services; privacy; security and other risks associated with our
business; management of growth; volatility and uncertainty in
the global economy and financial markets in light of the evolving
COVID-19 pandemic; and the other risk factors set forth from time
to time in our SEC filings, copies of which are available
free of charge within the Investor Relations section of
the Benefitfocus website
at http://investor.benefitfocus.com/sec-filings or upon
request from our Investor Relations
Department. Benefitfocus assumes no obligation and does
not intend to update these forward-looking statements, except as
required by law.
Benefitfocus, Inc.843-981-8898pr@benefitfocus.com
Investor Relations:Patti
Leahy843-981-8899ir@benefitfocus.com
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