Precipio, Inc. (NASDAQ:PRPO) Implements Performance-Based Awards for Senior Management

Precipio, Inc., a specialty cancer diagnostics company, disclosed in a recent 8-K filing with the Securities and Exchange Commission that it has introduced performance-based awards for its senior management team instead of traditional time-vested employee stock options for the year 2025. The decision was formalized on January 16, 2025, following a press release. The newly granted stock options for senior management will only vest when specific performance criteria are met, unlike the conventional time-based vesting structure.

The stock options awarded to senior management on January 14, 2025, are tied to the 10-day Volume-Weighted Average Price (VWAP) of Precipio’s common stock exceeding $30.30 per share, a fivefold increase compared to the option exercise price. This innovative approach underscores the Company’s commitment to aligning executive incentives with increased shareholder value through enhanced stock performance.

The Compensation Committee of Precipio authorized this unique form of vesting as part of the Company’s existing Employee Stock Ownership Plan (ESOP), which has received prior approval from the Company’s shareholders. The new structure grants senior management the choice between performance-based or traditional time-based vesting for their stock options. Significantly, all eligible executives opted for the performance-based vesting, showcasing confidence in the Company’s growth trajectory.

Ilan Danieli, CEO of Precipio, emphasized the strategic rationale behind this decision, stating, “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.” The shift to performance-based awards resonates with the Company’s vision for accelerated growth and shareholder value creation.

The press release also highlighted that the performance-based vesting scheme was extended to only six individuals in leadership positions within Precipio who are poised to significantly impact the Company’s performance. Richard Sandberg, the Chairman of the Board, and David Cohen, Chairman of the Compensation Committee, expressed satisfaction with the unanimous support from senior management regarding the new award structure.

Furthermore, in adherence to the affirmative vote from shareholders, all other company employees received stock options on January 14 with the conventional time-based vesting provision. Both forms of options have a common exercise price of $6.06, based on the closing price of the Company’s common stock on January 14, 2025.

Investors and stakeholders keen on following Precipio’s developments are encouraged to reach out via email to [email protected] or call at +1-203-787-7888 Ext. 523 for further inquiries.

Precipio, Inc., headquartered in New Haven, CT, focuses on healthcare biotechnology with an emphasis on cancer diagnostics. Its innovative solutions aim to address cancer misdiagnosis concerns through diagnostic products and services, ultimately enhancing patient outcomes and reducing healthcare costs. More information about Precipio can be found on their website www.precipiodx.com.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Precipio’s 8K filing here.

Precipio Company Profile

Precipio, Inc, a healthcare solutions company, provides diagnostic products, reagents, and services in the United States. It provides diagnostic blood cancer testing services. The company offers IV-Cell, a proprietary cell culture media that enables simultaneous culturing of four hematopoietic cell lineages; and HemeScreen, a suite of robust genetic diagnostic panels.