MVIS Executive Incentive & BOD Stock Awards

MVIS recently awarded shares to their Officers and Directors.

Independent Director awards were increased from 10,000 shares/year to 30,000.

Interestingly, the Officer awards introduce the concept of Performance Stock Units (PSUs) to align the awards with the shareholder interest, by only allowing the PSUs to have value if the share price has doubled since the award date:

1. Two thirds of the above shares are Performance Stock Units that have performance vesting criteria that would require the Company stock price to appreciate by more than 100% of the stock price on the grant date before they become earned. Earned PSUs are eligible to vest as to one-third (1/3) of the PSUs subject to the Award on the each of the first three (3) anniversaries of June 5, 2018, subject to the employment of the recipient on the above vesting dates. PSUs that become earned prior to a vesting date that would have vested on any earlier vesting date would become immediately vested. One third of the above shares are Restricted Stock Units. The reporting person vests ownership in (1/3) of the RSUs subject to the Award on the each of the first three (3) anniversaries of June 5, 2018 subject to the employment of the recipient on the above vesting dates.

So, my understanding of this is that these stock awards are granted in their entirety to the Officers after 3 years of ongoing service, if the stock price has doubled from the grant date.