Lots Of Options – Harvard Bioscience Further Details Its Executive Comp

Harvard Bioscience (HBIO) recently completed the spinoff of its regenerative medicine device subsidiary, Harvard Apparatus Regenerative Technologies (HART). As we previously noted, the parent’s CEO and other top management moved to the spinco, creating a leadership void. The posts have since been filled and the company recently announced the details of some further ‘inducement grants’ for its new management team. Here are the details:

— Jeffrey A. Duchemin – Chief Executive Officer — 500,000 options

— Robert E. Gagnon – Chief Financial Officer — 150,000 options

— Yong Sun – Vice President Strategic Marketing and Business Development —
100,000 options

— Yoav Sibony – Vice President of Global Sales – 50,000 options

Some nice potential there for the top dog. All of the options have an exercise price of $4.31 per share, currently putting them just slightly in the money. Of course, these aren’t supposed to be about the present, but instead provide motivation and incentives for strong future performance. While the vesting periods differ for the various execs, it will take a few years for the options to fully vest.

With spinoffs (and most companies in general), it’s always worth noting how well and the mechanisms through which its management team is ‘motivated’ and ‘incentivised’. In general, this information can be found within a company’s SEC filings.

Disclosure: Author holds no position in any stock mentioned.