Business Context and Reporting Period
This Form 8-K was filed by Second Sight Medical Products, Inc. on February 19, 2019. The report details compensatory arrangements approved by the Compensation Committee for the company's executive officers, based on performance milestones for the year ended December 31, 2018.
Key Financial Metrics
The filing does not provide revenue, profit, cash flow, margins, debt, or liquidity metrics. It focuses exclusively on executive compensation adjustments.
Material Changes and Compensation Details
The Compensation Committee approved salary adjustments and long-term incentive awards for three executive officers. The stock options granted have a strike price of $0.7401 per share, a 10-year term, and vest over four years in equal monthly installments. Restricted Stock Units (RSUs) vest over four years in equal annual installments. All awards are contingent upon continuous employment.
| Executive Officer | Current Salary | New Salary | Stock Options | Restricted Stock Units |
|---|---|---|---|---|
| Jonathan Will McGuire (President and CEO) | $407,790 | $426,140 | 354,000 | 177,000 |
| William Patrick Ryan (Chief Operating Officer) | $310,000 | $313,080 | 229,000 | 115,000 |
| John T. Blake (Chief Financial Officer) | $300,000 | $306,870 | 163,000 | 82,000 |
Guidance, Outlook, and Risks
The filing contains no forward-looking guidance, outlook, or specific risk factors beyond the standard vesting contingencies tied to continuous employment. The awards are based on the achievement of targeted milestones for 2018.
Important Facts for Investors to Verify
- Verify the total dilution impact of the 746,000 stock options and 374,000 RSUs granted.
- Confirm the specific performance milestones achieved in 2018 that triggered these awards.
- Review the company's cash burn rate to assess the sustainability of the increased salary obligations.
- Note that the strike price of $0.7401 reflects the Nasdaq closing price on February 19, 2019.