Esperion Announces Inducement Grants Under NASDAQ Listing Rule 5635(c)(4)

Rhea-AI Summary

Esperion (NASDAQ: ESPR) announced on January 28, 2021, that its Compensation Committee granted stock options and restricted stock units (RSUs) to 10 new employees, notably including newly appointed COO Sheldon Koenig. The stock options total 150,000 shares with an exercise price of $32.12, matching the closing stock price on the grant date. Additionally, 49,567 RSUs were awarded, 30,000 to Koenig. Vesting is structured with 25% after one year and the remainder in quarterly installments, contingent on continued employment.

Positive

• Appointment of Sheldon Koenig as COO may strengthen leadership.
• Incentives through stock options and RSUs could attract and retain talent.

Negative

• Stock options granted at a price equal to the market price may not provide immediate value to employees.

ANN ARBOR, Mich., Jan. 29, 2021 (GLOBE NEWSWIRE) -- Esperion (NASDAQ: ESPR) today announced that, on January 28, 2021, the Compensation Committee of Esperion’s Board of Directors granted 10 new employees (i) non-qualified stock options to purchase an aggregate of 150,000 shares of its common stock, all of which were granted to Sheldon Koenig, the Company’s newly appointed Chief Operating Officer, and (ii) 49,567 restricted stock units (RSUs), 30,000 of which were awarded to Mr. Koenig, under Esperion’s 2017 Inducement Equity Incentive Plan.

The 2017 Inducement Equity Incentive Plan is used exclusively for the grant of equity awards to individuals who were not previously an employee or non-employee director of Esperion (or following a bona fide period of non-employment), as an inducement material to such individual's entering into employment with Esperion, pursuant to Rule 5635(c)(4) of the NASDAQ Listing Rules.

The options have an exercise price of $32.12 per share, which is equal to the closing price of Esperion's common stock on January 28, 2021. Each option and RSU will vest and become exercisable as to twenty-five percent of the shares on the one-year anniversary of the recipient’s vesting commencement date, and will vest and become exercisable as to the remaining 75 percent of the shares in twelve equal quarterly installments at the end of each quarter following such anniversary, in each case, subject to each such employee's continued employment with Esperion on such vesting dates. The options and RSUs are subject to the terms and conditions of Esperion’s 2017 Inducement Equity Incentive Plan, and the terms and conditions of the stock option and RSU agreement covering the grant.

Esperion Therapeutics

Esperion is The Lipid Management Company. Our team of lipid experts works to lower bad cholesterol by discovering, developing and commercializing innovative medicines and combinations with established medicines. We work hard to make our medicines easy to take, easy to get and easy to have. We are singularly focused on disrupting high cholesterol so you can improve your health – easily. For more information, please visit www.esperion.com and follow us on Twitter at www.twitter.com/EsperionInc. 

Contact:
Kaitlyn Brosco
Esperion
corporateteam@esperion.com

FAQ

What stock options were granted by Esperion?

Esperion granted 150,000 stock options at an exercise price of $32.12 to 10 new employees.

How many RSUs were awarded to Sheldon Koenig?

Sheldon Koenig received 30,000 RSUs as part of his compensation package.

When does the vesting for the options and RSUs start?

Vesting begins one year after the grant date, with 25% vesting after one year and the rest in quarterly installments.

What is the purpose of the 2017 Inducement Equity Incentive Plan?

The plan is designed to grant equity awards to new employees as a material inducement for joining Esperion.

What is the significance of the stock options exercise price?

The exercise price of $32.12 for the stock options matches Esperion's closing stock price on the grant date, indicating no immediate financial gain.