Summary
Globalstar, Inc. filed an 8-K on November 20, 2008, reporting a significant change in its director compensation structure, effective November 14, 2008. Instead of receiving their final two quarterly restricted stock grants for 2008, the company's Board of Directors, including the CEO, was granted options to purchase 200,000 shares of common stock each. The exercise price for these options was set at $0.38 per share, reflecting the closing price on the grant date. This move appears to be an incentive for continued service through November 1, 2010, with a portion of the options subject to incremental forfeiture conditions tied to continued board membership. This change in compensation is notable for investors as it alters the equity compensation awarded to the highest leadership. While all options are vested, the forfeiture provisions introduce a performance-based element for a portion of the award. Investors should note the exercise price of $0.38, which provides context for potential future gains or losses on these options, and understand the company's strategy to retain board members through equity incentives during this period.
Key Highlights
- 1Globalstar, Inc. modified its director compensation structure on November 14, 2008.
- 2Directors will receive options to purchase 200,000 shares of common stock, replacing upcoming restricted stock grants.
- 3The exercise price for the director options is $0.38 per share, matching the stock's closing price on the grant date.
- 4The options are granted under the Amended and Restated 2006 Equity Incentive Plan.
- 5All directors, including the Chairman and CEO, received these options.
- 6While vested, 100,000 options per director are subject to decreasing incremental risk of forfeiture until November 1, 2010, contingent on continued service.
- 7This compensation change aims to incentivize director retention through November 1, 2010.