Stereotaxis Announces Long-Term CEO Performance Stock Award
25 February 2021 - 8:05AM
Stereotaxis (NYSE: STXS), the global leader in innovative robotic
technologies for the treatment of cardiac arrhythmias, today
announced a 10-year CEO performance stock award for David Fischel
with vesting entirely contingent upon the company achieving
billion-dollar market capitalization milestones.
David Fischel has served as unpaid CEO of
Stereotaxis since February 2017. Over his four-year tenure he has
led the revitalization of Stereotaxis’ commercial capabilities,
strengthened its financial position, and led the development of a
robust innovation strategy. Shareholders have benefited
substantially, with Stereotaxis’ stock appreciating approximately
10-fold during this period. The performance stock agreement is
designed to retain Mr. Fischel for the long term and align his
compensation with continued substantial shareholder returns.
Mr. Fischel’s total cash compensation is now
fixed at $60,000 annually. He will not be eligible for any
additional cash or time-vested equity or stock option awards. In
place of competitive cash or long-term incentives typically
consisting of stock or stock options, Mr. Fischel is granted,
subject to shareholder approval, performance stock awards
consisting of 10 tranches of stock that vest in 10 years only if
Stereotaxis’ market cap appreciates substantially above its current
value. To meet the first milestone, Stereotaxis’ market cap must
increase to $1 billion. Vesting of each of the remaining milestones
is contingent upon Stereotaxis’ market capitalization continuing to
increase in additional $500 million increments. Thus, full vesting
of the award is contingent upon Stereotaxis’ market cap increasing
to $5.5 billion. The award is designed to provide Mr. Fischel with
approximately 10% equity ownership in Stereotaxis on a fully
diluted basis if this highest threshold is accomplished.
“David Fischel has demonstrated an ability to
develop and execute a highly-attractive strategic plan despite
considerable challenges,” said Dr. Arun Menawat, Stereotaxis
Director and Chairman of Stereotaxis’ Compensation Committee. “The
first stage of Stereotaxis’ turnaround process has played out
successfully, and as we look towards subsequent stages, we are
excited by the scope of efforts to drive long-term growth and
value. This plan ensures Stereotaxis can benefit from David’s
contributions in the coming years.”
“My focus is on executing a long-term strategic
plan whereby Stereotaxis has a transformative impact on patients,
physicians, medical progress and shareholders,” said David Fischel.
“I strongly believe in the importance of alignment of interests and
appreciate having a plan that aligns my success with creating that
transformative positive impact.”
The new performance award was inspired by a
similar compensation plan adopted by Tesla to retain and
incentivize its CEO, Elon Musk. Stereotaxis’ plan was created and
unanimously approved by the independent members of the Board of
Directors in consultation with Compensia, a third-party
compensation consultant, and Globalview Advisors, a third-party
valuation expert. Full details on the employment and performance
stock agreements can be found in Stereotaxis’ 8-K filings with the
SEC. Effectiveness of the performance stock agreement is subject to
approval by Stereotaxis’ shareholders, who will be asked to approve
it at the annual shareholder meeting expected to be held in May of
this year.
About StereotaxisStereotaxis is
the global leader in innovative robotic technologies designed to
enhance the treatment of arrhythmias and perform endovascular
procedures. Its mission is the discovery, development and delivery
of robotic systems, instruments, and information solutions for the
interventional laboratory. These innovations help physicians
provide unsurpassed patient care with robotic precision and safety,
improved lab efficiency and productivity, and enhanced integration
of procedural information. The core components of Stereotaxis’
systems have received regulatory clearance in the United States,
European Union, Japan, Canada, China, and elsewhere. For more
information, please visit www.stereotaxis.com.
This press release includes statements that may
constitute “forward-looking” statements, usually containing the
words “believe,” “estimate,” “project,” “expect” or similar
expressions. Forward-looking statements inherently involve risks
and uncertainties that could cause actual results to differ
materially from the forward-looking statements. Factors that would
cause or contribute to such differences include, but are not
limited to, the Company's ability to continue to manage expenses
and cash burn rate at sustainable levels, continued acceptance of
the Company's products in the marketplace, the effect of global
economic conditions on the ability and willingness of customers to
purchase its systems and the timing of such purchases, competitive
factors, changes resulting from healthcare policy in the United
States, including changes in government reimbursement of
procedures, dependence upon third-party vendors, timing of
regulatory approvals, the impact of the recent coronavirus
(COVID-19) pandemic and our response to it, and other risks
discussed in the Company's periodic and other filings with the
Securities and Exchange Commission. By making these forward-looking
statements, the Company undertakes no obligation to update these
statements for revisions or changes after the date of this release.
There can be no assurance that the Company will recognize revenue
related to its purchase orders and other commitments in any
particular period or at all because some of these purchase orders
and other commitments are subject to contingencies that are outside
of the Company's control. In addition, these orders and commitments
may be revised, modified, delayed or canceled, either by their
express terms, as a result of negotiations, or by overall project
changes or delays.
Company Contacts:David L.
FischelChairman and Chief Executive Officer
Kimberly PeeryChief Financial Officer
314-678-6100investors@stereotaxis.com
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