MALVERN, PA — TELA Bio, Inc. (NASDAQ: TELA), a commercial-stage medical technology company, recently announced the approval of inducement grants for its newly-hired employees. The Compensation Committee of TELA Bio’s Board of Directors approved these grants as part of each individual’s employment compensation.
The inducement grants consist of restricted stock units covering 20,175 shares of TELA Bio’s common stock. These were awarded to sixteen new employees, with the grant date being December 14, 2023. The decision to offer these inducement grants falls under the Nasdaq Rule 5635(c)(4) inducement grant exception. This rule allows companies to offer such grants as a significant factor in persuading individuals to accept employment offers.
These restricted stock units will vest over a period of four years in equal annual installments. The vesting of these units is contingent on each individual’s continued service with TELA Bio until the respective vesting dates.
This move is a strategic approach by TELA Bio to attract and retain top talent. By incorporating equity-based compensation into their remuneration packages, TELA Bio provides an incentive for new employees to contribute to the company’s long-term success, as they can share in the potential future value created.
This practice of granting stock options to employees is becoming increasingly common among publicly-traded companies. It not only attracts new hires but also aligns their interests with those of the company and its shareholders, creating a unified focus on enhancing shareholder value.
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