GlobeNewswire Inc | May 7, 2021 04:05PM EDT

May 07, 2021

CHARLESTON, S.C., May 07, 2021 (GLOBE NEWSWIRE) -- Benefitfocus, Inc. (NASDAQ: BNFT), an industry-leading benefits technology platform that simplifies benefits administration for employers, health plans and brokers, announces that, in connection with the appointment of Matthew Levin as president and chief executive officer, and in accordance with the terms of his employment agreement with the Company, Benefitfocus board of directors approved an initial equity grant to Mr. Levin consisting of 70% restricted stock units (RSUs) and 30% performance stock units (PSUs) with a total value of $5,000,000, totaling 248,826 RSUs and 106,640 PSUs (the Initial Grant).

The Initial Grant has three purposes: to compensate Mr. Levin for the forgone awards from Mr. Levins previous employment; to create further alignment between Mr. Levin and our public shareholders through a performance-based award with vesting based on strong stock price performance; and to retain and motivate Mr. Levins performance over the next several years through an additional retention-based award; in all cases, subject to Mr. Levin continuing with Benefitfocus through the applicable vesting dates.

The RSU portion of the Initial Grant will vest in four equal annual installments beginning on the first anniversary of Mr. Levins start date, which is expected on May 10, 2021 (the Start Date). The PSU portion of the Initial Grant will vest in a single installment if the Company achieves a stock price milestone after the second anniversary of the Start Date and prior to the fifth anniversary of the Start Date, subject to a minimum service requirement of three years by Mr. Levin.

The Initial Grant was made as a material inducement to Mr. Levin becoming an employee of Benefitfocus in accordance with Nasdaq Listing Rule 5635(c)(4). The RSUs and PSUs are subject to the terms and conditions of the grant agreements covering each grant.

AboutBenefitfocusBenefitfocus(NASDAQ: BNFT) unifies the entire benefits industry through innovative technology solutions that bring efficiency, cost savings and simplicity to employee benefits administration. Our powerful cloud-based software, data-driven insights and thoughtfullydesigned services help employers, insurance brokers, health plansand suppliersaddress the complexity of benefits enrollment and engagement, while bringing easier access to health, wealth and lifestyle products througha world-class benefits experience.Our mission is simple: to improve lives with benefits.Learn more atwww.benefitfocus.com,LinkedInandTwitter.

DISCLAIMER REGARDING FORWARD LOOKING STATEMENTSExcept for historical information, all of the statements, expectations, and assumptions contained in this press release are forward-looking statements. Actual results might differ materially from those explicit or implicit in the forward-looking statements. Important factors that could cause actual results to differ materially include: our ability to maintain our culture and recruit, integrate and retain qualified personnel, including on our board of directors; our ability to compete effectively;the need to innovate and provide useful products and services; risks related to changing healthcare and other applicable regulations; the immature and volatile nature of the market for our products and services; privacy; security and other risks associated with our business; management of growth;volatility and uncertainty in the global economy and financial markets in light of the evolving COVID-19 pandemic; and the other risk factors set forth from time to time in ourSECfilings, copies of which are available free of charge within the Investor Relations section of theBenefitfocuswebsite at http://investor.benefitfocus.com/sec-filingsor upon request from our Investor Relations Department.Benefitfocusassumes no obligation and does not intend to update these forward-looking statements, except as required by law.

Benefitfocus, Inc.843-981-8898pr@benefitfocus.com

Investor Relations:Patti Leahy843-981-8899ir@benefitfocus.com