Business
Precipio grants senior management performance-based awards instead of traditional time-vested ESOPs
These options vest when PRPO stock price is 5x the exercise price NEW HAVEN, Conn., Jan. 16, 2025 (GLOBE NEWSWIRE) -- Specialty cancer diagnostics company
About this update from Precipio, Inc.
[{"type":"text","content":"These options vest when PRPO stock price is 5x the exercise price\nNEW HAVEN, Conn., Jan. 16, 2025 (GLOBE NEWSWIRE) -- Specialty cancer diagnostics company Precipio, Inc. (NASDAQ: PRPO), announced that options granted to senior management on January 14 would vest when the 10-day VWAP of the Company’s common stock exceeds $30.30 per share – a level 5x greater than the option exercise price, the closing price from Tuesday, January 14. These options have no time-based vesting; if the performance above is not met, the options will not vest. The Compensation Committee approved this form of vesting to incentivize the Company’s senior management team to maximize the Company’s performance and subsequent share price. The Compensation Committee provided the senior management team with the option to elect either the performance-based vesting structure or remain with the existing time-based vesting structure. The entire group elected to adopt the new performance-based structure, reflecting their confidence in the Company’s growth potential. Pursuant to long-term Company policy and practice, the options issued to all other employees on January 14 have time-based vesting, In accordance with the Company’s shareholder-approved stock option plan, both types of options have an exercise price of $6.06, the closing price of the Company’s common stock on January 14. “Holding myself and our senior management team’s feet to the fire by tying the vesting of this year’s stock options to a higher share price seems a sensible way to align interests and demonstrate our belief in the potential for our Company,” said Ilan Danieli, CEO. “By electing the performance-based vesting for our 2025 options grant, our team demonstrates that we believe the share price could reach 5x its current price in less than four years. I strongly believe that with the Company’s current performance, we will get there much faster,” added Ilan. Richard Sandberg, Chairman of the Board, emphasized that the Compensation Committee approved this form of vesting schedule for six individuals in Company leadership who are most likely to have the ability to impact Company performance and subsequent shareholder price. “We are pleased that all members of senior management enthusiastically supported this approach,” said David Cohen, Chairman of the Compensation Committee. The ESOP grant was au...