CARLSBAD, CA – Viasat Inc. (NASDAQ:VSAT), a global communications company, announced significant updates to its equity incentive plans following a recent annual meeting of stockholders.
In the meeting held on September 5, 2024, shareholders approved an amendment and restatement of the company's 1996 Equity Participation Plan, which now includes an additional 3,430,000 shares available for issuance, raising the total to 59,401,000 shares. Additionally, the period for granting incentive stock options has been extended to 2034.
After the stockholder gathering, Viasat's Board of Directors approved the 2024 Employment Inducement Incentive Award Plan, which mirrors the amended Equity Participation Plan but prohibits the issuance of incentive stock options. The Inducement Plan, designed to attract new talent, initially reserves 377,500 shares of common stock for grants, which can only be made to eligible individuals by Nasdaq rules.
During the annual meeting, the election of Class I Directors John Stenbit, Andrew Sukawaty, and Theresa Wise was also confirmed by the company's shareholders. Moreover, the appointment of PricewaterhouseCoopers LLP as Viasat’s independent registered public accounting firm for the fiscal year ending March 31, 2025, was ratified.
An advisory vote on executive compensation was conducted, and the amendment and restatement of the 1996 Equity Participation Plan were approved, reflecting the shareholders' support for Viasat's executive compensation strategy and equity plan modifications.
The details of these corporate governance and compensation matters are based on information from a recent SEC filing by Viasat.
In other recent news, Viasat has secured a $153 million contract to provide engineering and network modernization services for the U.S. Army's Blue Force Tracker program. The company's revenues have more than tripled to $4.5 billion under the leadership of Shawn Duffy, who will continue as Chief Accounting Officer after stepping down as CFO. Gary Chase, with extensive experience from Delta Air Lines (NYSE:DAL) and Barclays (LON:BARC) Capital, will take over as the new CFO.
Viasat has launched Enhanced LAISR, an on-demand L-band service expected to provide reliable satellite communications connectivity, particularly for military operations. The company has also unveiled upgrades to its L-band tactical satellite service (L-TAC), aimed at enhancing the experience for global government customers.
Strategic partnerships have been formed with Airbus Defence and Space, and Azercosmos, the national satellite operator of Azerbaijan. The Airbus collaboration will equip the Airbus C295 Maritime Patrol Aircraft with Viasat's GAT-5530 broadband terminal for the Spanish Ministry of Defence. The Azercosmos partnership aims to extend satellite services in Azerbaijan and surrounding regions.
Analysts from BofA Securities, Deutsche Bank (ETR:DBKGn), and Needham have recently adjusted their price targets for Viasat, reflecting varied ratings. These developments are part of Viasat's recent operations and market positioning.
InvestingPro Insights
As Viasat Inc. (NASDAQ:VSAT) moves to enhance its equity incentive plans, it's worth noting the company's current financial standing and market performance, which could influence investor sentiment and the attractiveness of these plans. According to InvestingPro data, Viasat has a market capitalization of $2.18 billion and is trading at a low Price / Book multiple of 0.43, which might suggest the stock is undervalued relative to its book value. Despite a negative P/E ratio of -2.13, indicating lack of profitability over the last twelve months, analysts are predicting a turnaround with the company becoming profitable this year.
InvestingPro Tips highlight that Viasat operates with a significant debt burden and has been quickly burning through cash. However, its liquid assets exceed short-term obligations, providing some financial flexibility. The stock has experienced high price volatility and has fared poorly over the last month, with a 25.15% drop in price total return. Yet, there has been a significant return over the last week, showing an 8.79% increase. For investors considering the implications of these equity incentive plans, these metrics and trends can be crucial. There are 10 additional InvestingPro Tips available, offering further insights into Viasat's financial health and market performance.
These InvestingPro Insights provide a snapshot of the company's financial situation that could be relevant for shareholders and potential investors as they assess the amended equity incentive plans and the company's future prospects.
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