SUNNYVALE, Calif.--(BUSINESS WIRE)--Financial Engines (NASDAQ:FNGN), a leading independent investment advisor1, today announced its Board of Directors has approved an inducement award as a component of employment compensation for its recently appointed executive John Bunch. The award was approved by the Board’s Compensation Committee on February 11, 2016 as an inducement material to Mr. Bunch’s entering into employment with the Company in accordance with NASDAQ Listing Rule 5635(c)(4).
Mr. Bunch will receive an aggregate value of three million dollars ($3,000,000), half in the form of an option to purchase shares of the Company’s common stock with an exercise price equal to the closing price of the Company’s common stock as of the anticipated award date of February 26, 2016, and one-half in the form of RSUs, with the number of shares subject to the inducement award to be calculated based on the closing price of the Company’s common stock on such date. The stock options and RSUs shall vest based on continued service, with 25% of the stock options vesting on the first anniversary of February 1, 2016, and an additional 1/48th vesting monthly over the following 36 months, and the RSUs vesting 25% on the first anniversary of February 1, 2016, and an additional 25% on each the following three (3) annual anniversary dates. In addition, the vesting of the stock options and RSUs may be accelerated upon certain terminations of Mr. Bunch’s employment, including in connection with a change in control. This award was made outside of the Company's Amended and Restated 2009 Stock Incentive Plan (the "2009 Plan"), but will be subject to terms and conditions generally consistent with those in the 2009 Plan.
Mr. Bunch has served as President, Financial Engines Advisors L.L.C., our wholly—owned registered investment advisor subsidiary, and President, The Mutual Fund Store, L.L.C. (also an advisory subsidiary) since February 2016. Prior to joining the Company, Mr. Bunch held the position of Chief Executive Officer at The Mutual Fund Store from February 2012 to January 2016. For more information on Mr. Bunch, please visit http://corp.financialengines.com/about/team.html.
About Financial Engines
Financial Engines is America’s largest independent investment advisor1. We help people make the most of their money by providing full-service financial planning, including professional investment management and advice. Headquartered in Sunnyvale, CA, Financial Engines was co-founded in 1996 by Nobel Prize-winning economist William F. Sharpe. We serve as a comprehensive financial advisor for our workplace customers, and offer help to more than nine million people across 670 companies (including 143 of the Fortune 500). Our unique approach, combined with powerful online services, dedicated advisors and personal attention, promotes greater financial wellness and helps more Americans to meet their financial goals.
For more information, visit www.financialengines.com.
All advisory services provided by our investment advisory subsidiaries, including Financial Engines Advisors L.L.C. and a nationwide system of registered investment advisors known as The Mutual Fund Store. Financial Engines does not guarantee future results.
All information in this press release is as of the date stated or February 18, 2016 and unless required by law, Financial Engines undertakes no obligation to publicly revise any statement to reflect circumstances or events after the date of this press release or to report the occurrence of unanticipated events.
1 For independence methodology and ranking, see InvestmentNews RIA Data Center. (http://data.investmentnews.com/ria/).