Velo3D, Inc. announced a significant performance-based stock option award for its CEO, Arun Jeldi, tied to market capitalization milestones. The company also entered into new Change in Control (CIC) agreements with its CEO, CFO, and Chief Revenue Officer, defining severance benefits upon specific termination events related to a change in control.
Key Details
- CEO Performance Award: CEO Arun Jeldi was granted a performance-based stock option for 964,474 shares with an exercise price of $18.40. The award vests in tranches as the company's market capitalization reaches $1B (10%), $3B (20%), $5B (30%), and $10B (40%) within five years of the June 29, 2026 grant date.
- Change in Control Agreements: New agreements were established for CEO Arun Jeldi, CFO James Suva, and CRO Michelle Sidwell.
- Severance Terms: If terminated without cause or if they resign for good reason within a window of 3 months prior to and 12 months following a change in control, the executives will receive a lump sum payment (1x base salary + 1x target bonus + pro-rata bonus), full acceleration of time-based equity awards, and 12 months of paid medical benefit premiums.