MALVERN, PA — TELA Bio Inc. (NASDAQ: TELA) granted newly hired Chief Executive Officer Heather Getz stock options covering 2.37 million shares and restricted stock units covering another 500,000 shares, tying a substantial portion of her employment compensation to the medical technology company’s equity.
The board approved the inducement awards with an Aug. 3 grant date under a Nasdaq exception allowing equity grants as a material inducement for new employees.
Getz received standard options covering 1.365 million shares with an exercise price of $0.74 per share, equal to TELA Bio’s Nasdaq closing price on the grant date.
She also received premium-priced options covering 1.005 million shares with a $0.90 exercise price, about 22% above the stock’s Aug. 3 closing price.
Both sets of options have 10-year terms. Twenty-five percent will vest on the first anniversary of the grant date, with the remaining 75% vesting in equal monthly installments over the following 36 months, contingent on Getz remaining with the company through the applicable dates.
Getz’s 500,000 restricted stock units will vest in equal annual installments over four years, also subject to continued service.
Separately, TELA Bio’s board compensation committee approved restricted stock units covering 95,500 shares for 11 other newly hired employees. Those awards carry an Aug. 4 grant date and will vest in equal annual installments over four years.
The company granted both Getz’s awards and those for the other employees under Nasdaq Rule 5635(c)(4), which provides an exception from certain shareholder-approval requirements for equity compensation used as an inducement to employment.
TELA Bio develops and sells medical technology for soft-tissue reconstruction.
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