eHealth, Inc. announces stock inducement grants to Derrick Duke, its incoming CEO. The grants are tied to his appointment and long-term company performance.
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| eHealth, Inc. grants restricted stock units to Derrick Duke as part of his transition into the CEO role, with a focus on performance and long-term company growth. Image: CH |
Austin, Texas, United States — August 9, 2025:
Online health insurance marketplace eHealth has announced the grant of inducement restricted stock unit (RSU) awards to Derrick Duke, who is set to become the company’s next CEO. The RSU awards were granted on August 4, 2025, in accordance with the terms outlined by the company following Duke's appointment on July 29, 2025.
Duke will officially take over the role of CEO on September 18, 2025, after joining eHealth on August 4, 2025, to begin the transition. As part of his appointment, the company’s Compensation Committee approved the issuance of two significant RSU awards to Duke, aimed at aligning his interests with the company's long-term performance and growth.
The first award consists of 300,000 shares of eHealth’s common stock. The shares will vest over a three-year period, with one-third of the shares becoming vested on each of the first, second, and third anniversaries of the vesting commencement date, set for August 4, 2025. The vesting is contingent upon Duke’s continued service with the company, with accelerated vesting possible in certain circumstances such as employment termination.
The second RSU award also covers 300,000 shares of eHealth common stock. However, this award is tied to specific company performance goals set for the fiscal years 2025 to 2027. Vesting will occur once these performance targets are met, with Duke’s continued service being a requirement for full vesting. Similarly, this award allows for acceleration in the event of certain termination scenarios.
The inducement grants are in compliance with Nasdaq Listing Rule 5635(c)(4), which permits such stock awards as inducements for executives joining a company. These awards highlight eHealth’s commitment to a smooth leadership transition and its strategic focus on long-term growth under Duke’s leadership.
The RSU grants are seen as key to motivating Duke in his role as CEO and ensuring that his goals are closely aligned with eHealth’s future success.