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Waystar Holding Corp. (NASDAQ:WAY), a leader in integrated systems design with a market capitalization of $6.92 billion and impressive revenue growth of 18.25% over the last twelve months, has disclosed a new compensatory arrangement for its CEO, Matt Hawkins (NASDAQ:HWKN), through an 8-K filing with the Securities and Exchange Commission (SEC). According to InvestingPro data, the company maintains a "GREAT" financial health score of 3.18, suggesting strong operational performance. According to the filing, the Compensation Committee of Waystar’s Board of Directors approved a significant performance stock unit (PSU) grant under the company’s 2024 Equity Incentive Plan.
The grant consists of a target number of 396,197 PSUs, with the final amount vesting based on Waystar’s total shareholder return (TSR) relative to its peers in the S&P SmallCap 600 Information Technology sector index. The performance period for this grant is set from April 1, 2025, to April 1, 2029. Hawkins could potentially earn up to 200% of the target PSUs if the company’s TSR reaches or exceeds the 80th percentile of its peer group.
The vesting of these PSUs is contingent upon continuous employment through the end of the performance period. However, provisions have been made for a pro rata portion to vest in cases of termination by the company without cause, by Hawkins for good reason, or due to death or disability.
Additionally, the filing revealed that the Nominating and Corporate Governance Committee recommended expanding the Board from ten to twelve directors, contingent upon the effectiveness of a Certificate of Amendment to remove the limit on board size. Proposed new directors include Aashima Gupta, to serve as a Class III director, and Michael Roman, as a Class I director, both subject to board approval and the amendment’s enactment.
This strategic decision aligns with Waystar’s commitment to robust governance and executive compensation tied closely to performance, potentially incentivizing leadership to pursue long-term shareholder value creation. The company’s solid financial position is reflected in its healthy current ratio of 3.12, indicating strong liquidity. For deeper insights into Waystar’s valuation and growth prospects, investors can access comprehensive analysis through InvestingPro, which offers 8 additional key tips and detailed financial metrics for informed decision-making.
The information is based on a press release statement from Waystar Holding Corp.
In other recent news, Waystar Holding Corp reported a significant 14% year-over-year revenue increase for Q1 2025, reaching $256.4 million. The company also raised its full-year revenue guidance, indicating confidence in future growth. Analysts have taken note, with Truist Securities raising Waystar’s stock price target to $50 while maintaining a "Buy" rating, citing strong integration of Change Healthcare (NASDAQ:CHNG) clients and robust revenue estimates for the coming years. Conversely, Canaccord Genuity adjusted its price target to $47, noting a slight decrease but maintaining a "Buy" rating due to Waystar’s strong performance exceeding expectations. The company also launched new AI-powered solutions, which are anticipated to sustain double-digit revenue growth with high margins. Waystar’s management expressed optimism about potential market share gains and growth among existing clients, despite acknowledging potential economic challenges. The company’s focus on AI and automation, along with a high net revenue retention rate of 114%, underscores its strategic direction and resilience in the market.
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