Executives given RSUs (vested free shares)

[sportsrancho]

Bottom line is it’s dilutive.

[mytakeonit]

You mean like putting ice in wine?

But, that's mytakeonit

[mango]

It’s not dilutive until after they are exercised sometime in 2023 and by then the stock price will be high enough that I’ll be filthy rich as well.

Good thing I bought more shares today.

🥭

[figglebird]

Company announces months ago that SHARE COMPENSATION was on ballot w boiler plate esq reasoning - whatever

1. The majority of you have been diluted via the funding of trials and operations, the latter of which turned and began steadily decreasing at a rate that last year predictably reversed a 5 year historical ratio/money grab - this was what enabled short sellars to depress sp via forward projections, that no longer meet demand(future avail shares)

2. These Rsus, more to the point cannot be vested at the current sp - which similar to the ratio above have w each prior issuing,increased at vesting price.

3. I know what I see. If you cannot see it, then consider how supply and demand works when shorting an equity no longer by law being naked shorted.

[casualinvestor]

With very little growth over 3 years, they line themselves up for a payday.

I don't mind big payouts for big performance. But this looks like "coast you way to a C- average and get a nice bonus"

[matt]

Sept 1, 2020 16:52:18 GMT -5 sportsrancho said:

Bottom line is it’s dilutive.

Every form of executive and employee compensation is dilutive to shareholders; it is just a question of what mix of guaranteed income and incentive compensation a company wants to have.  Too much of either one can create the wrong incentives.  The real problem is that shareholders are unhappy with the performance of the company; if MNKD was outperforming the market consistently year after year would anybody care if Mike & friends had a nice stock incentive as a reward?  The restricted stock is not the problem, the lack of performance is.

[oldfishtowner]

Aug 31, 2020 19:37:30 GMT -5 awesomo said:

So yeah, executives were awarded millions of shares.

Mike Castagna: 909,000 shares
Steven Binder: 364,000 shares
David Thompson: 364,000 shares
Joseph Kocinsky: 364,000 shares
Stuart Tross: 364,000 shares
Alejandro Galindro: 364,000 shares
Rose Alinaya: 130,000 shares

Total: 2,859,000 shares

SEC Forms

The restricted stock unit will vest on May 22, 2023 provided that the closing price of MannKind common stock on such vesting date is not less than the closing price on August 27, 2020. The number of shares delivered on the vesting date, as a percentage of the target specified in Box 4 above, is determined by the percentile ranking of MannKind total shareholder return (TSR) over the period from August 27, 2020 until May 22, 2023 related to the TSR of the Russell 3000 Pharmaceutical & Biotechnology Index over the same period, as follows: less than 25th percentile=0% of target, 25th percentile=50% of target, 50th percentile=100% of target, 75th percentile=200% percent of target, 90th percentile or higher=300% maximum. Payout values will be interpolated between the percentile rankings above.

The paragraph above in italics is footnote 3 to the Form 4. As I read the Form 4, this footnote does not apply to all the restricted stock listed on the form. For example, Castagna's Form 4 indicates that 409,000 shares are subject only to footnotes 1 & 2, i.e., vest 25% annually over 4 years regardless of the performance of the share price. Only 500,000 shares are subject to footnote 3 quoted above, i.e. subject to the share price performance relative to the Russell 3000 through 2023 when the shares vest. So the maximum number for shares that could vest is 1,909.000, rather than 2,727,000 (MNKD in 90th percentile), and the minimum number is 400,000, not zero (if stock price is less than $1.70 ON May 22, 2023).

[kenken]

How the Mannkind Corporation's executives RSUs Sec filing is compare to the investor who are interesting to buy Leaps of 2023, $3 or 4$ Calls Options? Does Mannkind Corporation pay small premium to protect the acting in advance?