HealthStream CEO, Robert A. Frist, Jr., has contributed $3.5 million of his personally owned shares of HealthStream common stock to benefit employees.
Over 700 employees with a minimum of three years of service will receive shares proportionate to their tenure.
The contribution aims to recognize the team's hard work and foster a sense of ownership among employees.
CEO Contribution
Robert A. Frist, Jr., contributed 146,286 shares valued at $3.5 million to benefit employees.
Employee Eligibility
700+ employees with a minimum of three years of service will receive shares from the contribution.
No Executive Inclusion
Executives, VP, and Associate VP will not receive shares from the CEO's contribution.
Financial Impact
The contribution will result in no dilution for existing shareholders, with a recorded compensation expense of $3.5 million.
- The contribution is expected to reduce operating income, net income, and earnings per share in the fourth quarter of 2025.
- The financial impact includes recording a compensation expense of $3.5 million and administrative expenses of approximately $275,000 related to the equity grants.
The CEO's gesture of sharing ownership with employees demonstrates recognition of their efforts and alignment with the company's vision to improve healthcare delivery.