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Cerence Inc. (NASDAQ: CRNC) has announced an equity grant to its newly appointed Chief Executive Officer and President, Brian Krzanich, effective October 7, 2024. The initial equity award has a target aggregate value of $6 million, based on the average closing price of the Company’s common stock over the trailing 20 trading days ending on the date of grant.
The award consists of 1,038,062 time-based restricted stock units and a target of 1,038,062 performance-based restricted stock units. The time-based units will vest in three equal installments on October 7, 2025, 2026, and 2027, subject to Krzanich’s continued service. The performance-based units will be earned based on Company performance metrics during the three fiscal-year period ending September 30, 2027, subject to Krzanich’s continued service through the fiscal year 2027 earnings release date.
These awards were granted as an inducement for Krzanich to join Cerence, in accordance with Nasdaq Listing Rule 5635(c)(4).
Cerence Inc. (NASDAQ: CRNC) ha annunciato un conferimento di azioni al suo nuovo Amministratore Delegato e Presidente, Brian Krzanich, a partire dal 7 ottobre 2024. L’assegnazione iniziale ha un valore aggregato target di 6 milioni di dollari, basato sul prezzo medio di chiusura delle azioni ordinarie dell’azienda negli ultimi 20 giorni di negoziazione che si concludono nella data di assegnazione.
L’assegnazione consiste in 1.038.062 unità azionarie soggette a restrizioni basate sul tempo e un obiettivo di 1.038.062 unità azionarie soggette a restrizioni basate sulle performance. Le unità basate sul tempo verranno acquisite in tre rate uguali il 7 ottobre 2025, 2026 e 2027, a condizione che Krzanich continui il suo servizio. Le unità basate sulle performance saranno premiate in base agli indicatori di performance dell’azienda nel corso del triennio che termina il 30 settembre 2027, a condizione che Krzanich continui il suo servizio fino alla data di rilascio dei risultati fiscali del 2027.
Questi premi sono stati concessi come incentivo per Krzanich a unirsi a Cerence, in conformità con la Regola 5635(c)(4) del Nasdaq.
Cerence Inc. (NASDAQ: CRNC) ha anunciado una concesión de acciones a su recién nombrado Director Ejecutivo y Presidente, Brian Krzanich, efectiva a partir del 7 de octubre de 2024. La concesión inicial tiene un valor agregado objetivo de 6 millones de dólares, basado en el precio de cierre medio de las acciones ordinarias de la compañía durante los últimos 20 días de negociación que finalizan en la fecha de concesión.
La concesión consiste en 1.038.062 unidades de acciones restringidas basadas en el tiempo y un objetivo de 1.038.062 unidades de acciones restringidas basadas en el desempeño. Las unidades basadas en el tiempo se adquirirán en tres pagos iguales el 7 de octubre de 2025, 2026 y 2027, sujeto a la continuación del servicio de Krzanich. Las unidades basadas en el desempeño se otorgarán en función de los indicadores de rendimiento de la empresa durante el período fiscal de tres años que termina el 30 de septiembre de 2027, sujeto a la continuidad del servicio de Krzanich hasta la fecha del informe de ganancias del año fiscal 2027.
Estos premios se concedieron como un incentivo para que Krzanich se uniera a Cerence, de acuerdo con la Regla de listado 5635(c)(4) de Nasdaq.
세렌스 Inc. (NASDAQ: CRNC)는 새롭게 임명된 CEO이자 사장인 브라이언 크자니흐에게 2024년 10월 7일부터 유효한 주식 보상을 발표했습니다. 초기 주식 보상은 보상일 기준으로 최근 20일 거래일 동안의 평균 종가를 기반으로 600만 달러의 목표 총 가치를 가지고 있습니다.
이 보상은 1,038,062개의 시간 기반 제한 주식 단위와 1,038,062개의 성과 기반 제한 주식 단위로 구성됩니다. 시간 기반 단위는 크자니흐의 지속적인 서비스에 따라 2025년, 2026년 및 2027년의 10월 7일에 세 번에 걸쳐 균등하게 취득됩니다. 성과 기반 단위는 2027년 9월 30일에 종료되는 3개 회계 연도의 회사 성과 기준에 따라 부여되며, 크자니흐가 2027 회계 연도 수익 발표일까지 지속적으로 서비스를 제공해야 합니다.
이 보상은 크자니흐가 세렌스에 합류하도록 유도하기 위해 부여되었습니다. 이는 나스닥 상장 규정 5635(c)(4)에 해당합니다.
Cerence Inc. (NASDAQ: CRNC) a annoncé une attribution d’actions à son nouveau Directeur Général et Président, Brian Krzanich, effectif à partir du 7 octobre 2024. La première attribution d’actions a une valeur totale cible de 6 millions de dollars, basée sur le prix de clôture moyen des actions ordinaires de l’entreprise au cours des 20 dernières journées de bourse se terminant à la date d’attribution.
L’attribution se compose de 1.038.062 unités d’actions restreintes basées sur le temps et d’un objectif de 1.038.062 unités d’actions restreintes basées sur la performance. Les unités basées sur le temps acquériront en trois versements égaux les 7 octobre 2025, 2026 et 2027, sous réserve de la poursuite des services de Krzanich. Les unités basées sur la performance seront attribuées en fonction des critères de performance de l’entreprise pendant la période de trois exercices se terminant le 30 septembre 2027, sous réserve de la poursuite des services de Krzanich jusqu’à la date de publication des résultats de l’exercice 2027.
Ces attributions ont été accordées comme incitation pour que Krzanich rejoigne Cerence, conformément à la règle de cotation 5635(c)(4) du Nasdaq.
Cerence Inc. (NASDAQ: CRNC) hat eine Aktienzuweisung an seinen neu ernannten Chief Executive Officer und Präsidenten, Brian Krzanich, bekannt gegeben, die am 7. Oktober 2024 in Kraft tritt. Die ursprüngliche Aktienzuweisung hat einen Zielgesamtwert von 6 Millionen Dollar, basierend auf dem durchschnittlichen Schlusskurs der Stammaktien des Unternehmens über die letzten 20 Handelstage, die am Datum der Zuweisung enden.
Die Zuweisung besteht aus 1.038.062 zeitbasierten, eingeschränkten Aktieneinheiten und einem Ziel von 1.038.062 leistungsbasierten, eingeschränkten Aktieneinheiten. Die zeitbasierten Einheiten werden in drei gleichen Raten am 7. Oktober 2025, 2026 und 2027 fällig, vorausgesetzt, dass Krzanich weiterhin im Unternehmen tätig ist. Die leistungsbasierten Einheiten werden auf der Grundlage der Unternehmensleistungskennzahlen über den dreijährigen Zeitraum, der am 30. September 2027 endet, verdient, und Krzanich muss bis zum Tag der Veröffentlichung der Jahresergebnisse 2027 im Unternehmen tätig sein.
Diese Auszeichnungen wurden als Anreiz für Krzanich gewährt, um zu Cerence zu stoßen, gemäß der Nasdaq-Listing-Regel 5635(c)(4).
Positive
- Appointment of new CEO and President, Brian Krzanich
- Significant equity grant of $6 million to attract top executive talent
- Performance-based restricted stock units tied to company performance metrics
Negative
- Potential dilution of existing shareholders due to new equity issuance
Insights
The appointment of Brian Krzanich as CEO and President of Cerence Inc. is a significant development, accompanied by a substantial equity grant. The $6 million target value of the award, split equally between time-based and performance-based restricted stock units (RSUs), signals a strong commitment to aligning the new CEO’s interests with those of shareholders.
The structure of the award is noteworthy:
- 1,038,062 time-based RSUs vesting over three years promote retention
- 1,038,062 performance-based RSUs tied to company metrics over three fiscal years incentivize long-term performance
This compensation package represents about 4.2% of Cerence’s current market cap, a significant stake that could motivate strong performance. However, investors should monitor how this dilution impacts earnings per share. The performance metrics for the RSUs will be important in determining the actual value realized and should be scrutinized when disclosed.
While the grant is substantial, it’s not uncommon for incoming CEOs in the tech sector. Krzanich’s experience, likely from his time at Intel, could bring valuable expertise to Cerence’s AI-focused business in the automotive sector. Investors should watch for strategic shifts or growth initiatives under his leadership that could justify this investment.
BURLINGTON, Mass., Oct. 11, 2024 (GLOBE NEWSWIRE) — Cerence Inc. (NASDAQ: CRNC) (the “Company”), AI for a world in motion, today announced that, in connection with Brian Krzanich’s recent appointment as Chief Executive Officer and President effective October 7, 2024, the Company granted Mr. Krzanich an initial equity award with a target aggregate value of $6 million, based on the average closing price of the Company’s common stock over the trailing 20 trading days ending on the date of grant. Such award consists of 1,038,062 time-based restricted stock units and a target of 1,038,062 performance-based restricted stock units. The time-based restricted stock units will vest in three equal installments on each of October 7, 2025, October 7, 2026, and October 7, 2027, in each case subject to Mr. Krzanich’s continued service with the Company through the applicable vesting date. The performance-based restricted stock units will be earned based on the achievement of Company performance metrics during the three fiscal-year period ending on September 30, 2027, subject to Mr. Krzanich’s continued service with the Company through the date that the Company publicly issues its earnings release for fiscal year 2027. All of these awards were granted as an inducement material to Mr. Krzanich entering into employment with the Company pursuant to Rule 5635(c)(4) of the Nasdaq Listing Rules.
To learn more about Cerence, visit www.cerence.com, and follow the company on LinkedIn.
About Cerence Inc.
Cerence (NASDAQ: CRNC) is the global industry leader in creating unique, moving experiences for the mobility world. As an innovation partner to the world’s leading automakers and mobility OEMs, it is helping advance the future of connected mobility through intuitive, AI-powered interaction between humans and their vehicles, connecting consumers’ digital lives to their daily journeys no matter where they are. Cerence’s track record is built on more than 20 years of knowledge and 500 million cars shipped with Cerence technology. Whether it’s connected cars, autonomous driving, e-vehicles, or two-wheelers, Cerence is mapping the road ahead. For more information, visit www.cerence.com.
Contact Information
Investors: Rich Yerganian | Tel: 781-708-2801 | Email: richard.yerganian@cerence.com
Media: Kate Hickman | Tel: 339-215-4583 | Email: kate.hickman@cerence.com
FAQ
What is the value of the equity grant given to Cerence’s new CEO?
Cerence (CRNC) granted its new CEO, Brian Krzanich, an initial equity award with a target aggregate value of $6 million, based on the average closing price of the Company’s common stock over the trailing 20 trading days ending on the date of grant.
When did Brian Krzanich start as CEO of Cerence (CRNC)?
Brian Krzanich was appointed as Chief Executive Officer and President of Cerence (CRNC) effective October 7, 2024.
How many restricted stock units were granted to Cerence’s (CRNC) new CEO?
Cerence (CRNC) granted its new CEO 1,038,062 time-based restricted stock units and a target of 1,038,062 performance-based restricted stock units.
What is the vesting schedule for the time-based restricted stock units granted to Cerence’s (CRNC) new CEO?
The time-based restricted stock units granted to Cerence’s (CRNC) new CEO will vest in three equal installments on October 7, 2025, October 7, 2026, and October 7, 2027, subject to continued service with the Company.
