Cable One Grants Inducement Equity Awards to New CEO Pursuant to NYSE Rule 303A.08
MWN-AI** Summary
Cable One, Inc. (NYSE: CABO) has announced the granting of significant equity awards to its newly appointed CEO, James A. Holanda, as an inducement for his acceptance of the role. This decision aligns with the employment inducement exemption outlined in NYSE Rule 303A.08, which permits such awards to attract key executives. The awards, collectively referred to as "Hire-On Awards," have a total grant date value of about $10 million, with 60% allocated to performance-based restricted stock units (PSUs) and 40% to time-based restricted stock units (RSUs). The maximum number of shares involved in this grant will not exceed 169,000 shares of Cable One’s common stock.
The terms of these awards mirror those of the annual grant cycle for other executives at the Company, reinforcing a consistent compensation structure that aims to motivate and retain top talent. The Board of Directors and the Compensation and Talent Management Committee have both approved the issuance of these awards, emphasizing the strategic importance of Mr. Holanda's leadership to Cable One's ongoing growth and success.
In the press release, Cable One included a cautionary statement regarding forward-looking statements, highlighting that actual results related to the vesting of the equity awards may differ due to various unpredictable factors. The Company is committed to transparency and adheres to regulations laid out by the Securities and Exchange Commission.
Cable One, a leading broadband provider, is dedicated to delivering exceptional service to over one million customers across 24 states. With a focus on innovation, reliability, and enhancing customer experience, Cable One aims to bridge the digital divide and foster community connectivity, making it a trusted name in the telecommunications field.
MWN-AI** Analysis
Cable One, Inc. (NYSE: CABO) recently announced the granting of significant inducement equity awards to its new CEO, James A. Holanda, totaling approximately $10 million. This strategic move, comprising 60% performance-based and 40% time-based restricted stock units (RSUs), is essential for aligning executive compensation with shareholder interests, fostering motivation, and providing a strong incentive for long-term performance.
From a market perspective, this initiative can be seen as a double-edged sword. On one hand, the sizeable equity awards indicate the company’s commitment to leadership stability and its forward-looking vision under Mr. Holanda's direction. Given that the majority of the awards are performance-based, this suggests a focus on achieving specific operational and financial targets that could potentially enhance shareholder value over time. Investors often respond positively to organizational stability and a clear commitment to driving growth.
Conversely, the issuance of such equity awards may raise concerns regarding dilution of existing shares, as up to 169,000 new shares may enter circulation. This dilution effect could dampen short-term share price reactions unless underscored by corresponding company performance improvements. Therefore, it's essential for investors to monitor Cable One's performance metrics closely, especially in the face of increasing competition in the broadband sector.
Investors should consider maintaining a cautious outlook while assessing longer-term potential as Mr. Holanda implements his strategic vision. The effectiveness of this investment will depend significantly on the company's ability to meet the performance benchmarks tied to the equity awards. Consequently, stakeholders should keep abreast of quarterly performance updates and any strategic initiatives that may arise during Mr. Holanda’s tenure. Overall, while the immediate impact on stock valuation may be mixed, the long-term benefits could prove favorable if the company capitalizes on its leadership change effectively.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Cable One, Inc. (NYSE: CABO) (the “Company” or “Cable One”) today announced that it has granted equity awards to James A. Holanda as a material inducement to Mr. Holanda’s acceptance of employment with the Company as its Chief Executive Officer. The equity awards are consistent with the previously disclosed terms of Mr. Holanda’s offer letter and were approved by the Board of Directors (the “Board”) and the Compensation and Talent Management Committee of the Board in reliance on the employment inducement exemption under the NYSE's Listed Company Manual Rule 303A.08. Cable One is issuing this press release pursuant to the requirements of that rule.
The equity awards consist of one-time grants of time-based restricted stock units (“RSUs”) and performance-based RSUs (“PSUs”), having an aggregate grant date value equal to approximately $10,000,000 of which 60% of such grants will be PSUs and 40% will be RSUs (such awards, the “Hire-On Awards”). The Hire-On Awards will have substantially the same vesting terms and conditions as awards granted to other executives of the Company as part of the Company’s 2026 annual grant cycle. The maximum aggregate number of shares subject to the Hire-On Awards will be no more than 169,000 shares of the Company’s common stock.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those expressed or implied by these statements. You can generally identify forward-looking statements by the words “anticipate,” “believe,” “can,” “continue,” “could,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “may,” “might,” “objective,” “outlook,” “plan,” “potential,” “predict,” “projection,” “seek,” “should,” “target,” “trend,” “will,” “would” or the negative version of these words or other comparable words. Any statements regarding the future vesting of the equity awards and any other statements that are not historical facts are forward-looking statements. Such forward-looking statements are subject to various risks, uncertainties, assumptions, or changes in circumstances that are difficult to predict or quantify. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors include, but are not limited to, the factors described under “Risk Factors” in the Company’s Annual Report on Form 10-K for the period ended December 31, 2025 and the Company’s other filings with the Securities and Exchange Commission, and uncertainties, assumptions and changes in circumstances that may cause actual results to differ materially from those expressed or implied in any forward-looking statement. Each forward-looking statement contained herein speaks only as of the date of this press release, and the Company undertakes no obligation to update or revise any forward-looking statements whether as a result of new information, future developments or otherwise, except as required by law.
About Cable One
Cable One, Inc. (NYSE:CABO) is a leading broadband communications provider delivering exceptional service and enabling more than 1 million residential and business customers across 24 states to thrive and stay connected to what matters most. Through Sparklight®, the brand our customers know and trust, we’re not just shaping the future of connectivity — we’re transforming it with a commitment to innovation, reliability and customer experience at our core.
Our robust infrastructure and cutting-edge technology don’t just keep our customers connected; they help drive progress in education, business and everyday life. We’re dedicated to bridging the digital divide, empowering our communities and fostering a more connected world. When our customers choose Cable One, they are choosing a team that is always working for them – one that believes in the relentless pursuit of reliability, because being a trusted neighbor isn’t just what we do—it’s who we are.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260218115769/en/
Trish Niemann
Vice President, Communications Strategy
[email protected]
Todd Koetje
CFO
[email protected]
FAQ**
How do the equity awards granted to James A. Holanda as part of Cable One Inc. (CABO) align with the company’s long-term strategic goals and performance metrics?
What specific performance targets will determine the vesting of the performance-based RSUs (PSUs) awarded to James A. Holanda at Cable One Inc. (CABO)?
Can you elaborate on how the leadership changes, including Mr. Holanda's appointment, might impact the future growth and operational strategy of Cable One Inc. (CABO)?
In light of the forward-looking statements regarding the equity awards, what are the key risk factors that investors should consider when evaluating Cable One Inc. (CABO)?
**MWN-AI FAQ is based on asking OpenAI questions about Cable One Inc. (NYSE: CABO).
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