Pacific Biosciences Grants Equity Incentive Awards to New Employees

Rhea-AI Summary

Pacific Biosciences (NASDAQ: PACB) announced on January 12, 2021, the granting of stock options and restricted stock units (RSUs) under its 2020 Inducement Equity Incentive Plan. Chief Operating Officer Mark Van Oene received options for 750,000 shares and RSUs for 335,000 shares. Chief Commercial Officer Peter Fromen was granted options for 320,000 shares and RSUs for 160,000 shares. Additionally, a non-executive officer received options for 100,000 shares and RSUs for 50,000 shares. The exercise prices are set at $36.70 and $32.89 per share, linked to closing prices on respective grant dates.

Positive

• Attraction of key executive talent with significant equity grants.
• Use of equity incentives to align interests of executives with shareholders.

Negative

• Potential dilution of existing shares due to large equity grants.
• High exercise prices may indicate perceived value challenges in retaining top talent.

MENLO PARK, Calif., Jan. 12, 2021 (GLOBE NEWSWIRE) -- Pacific Biosciences of California, Inc. (NASDAQ: PACB) (“Pacific Biosciences” or the “Company”), a leading provider of high-quality, long read sequencing platforms, today announced that the Board of Directors granted non-qualified stock options covering an aggregate of 750,000 shares of Pacific Biosciences common stock and restricted stock units (“RSUs”) covering 335,000 shares of Pacific Biosciences common stock to the Company’s recently hired Chief Operating Officer, Mark Van Oene, under the Pacific Biosciences 2020 Inducement Equity Incentive Plan (the “Inducement Plan”) effective on January 8, 2021.

The Board of Directors also granted non-qualified stock options covering an aggregate of 320,000 shares of Pacific Biosciences common stock and RSUs covering 160,000 shares of Pacific Biosciences common stock to the Company’s recently hired Chief Commercial Officer, Peter Fromen, under the Inducement Plan, also effective on January 8, 2021.

The Compensation Committee of the Company’s Board of Directors granted non-qualified stock options covering an aggregate of 100,000 shares of Pacific Biosciences common stock and RSUs covering 50,000 shares of Pacific Biosciences common stock to a recently hired non-executive officer employee under the Inducement Plan, effective on January 7, 2021.

The Inducement Plan is used exclusively to grant equity awards to individuals who were not previously an employee or non-employee director of Pacific Biosciences as an inducement material to such individual’s entering into employment with Pacific Biosciences in accordance with Nasdaq Marketplace Rule 5635(c)(4).

The options granted to the Chief Operating Officer and the Chief Commercial Officer each have an exercise price of $36.70 per share, which is equal to the closing price of Pacific Biosciences common stock on January 8, 2021. The options granted to the employee have an exercise price of $32.89 per share, which is equal to the closing price of Pacific Biosciences common stock on January 7, 2021. The shares subject to each of the option grants shall be scheduled to vest and become exercisable as to 1/4^th of the total number of shares on the one (1) year anniversary of the date of grant and as to 1/48^th of the total shares each month thereafter on the same day of the month as the applicable grant date (or the last day of the month, if a particular month does not have a corresponding day). The RSUs shall be scheduled to vest as to 1/4th of the total number of shares subject at grant to the RSUs on each of the one (1), two (2), three (3), and four (4) year anniversaries of each applicable grant date. The option grants and the RSU awards are subject to the terms and conditions of the Inducement Plan and the award agreements entered into with the employees.

About Pacific Biosciences

Pacific Biosciences of California, Inc. (NASDAQ: PACB) is empowering life scientists with highly accurate long-read sequencing. The company’s innovative instruments are based on Single Molecule, Real-Time (SMRT^®) Sequencing technology, which delivers a comprehensive view of genomes, transcriptomes, and epigenomes, enabling access to the full spectrum of genetic variation in any organism. Cited in thousands of peer-reviewed publications, PacBio^® sequencing systems are in use by scientists around the world to drive discovery in human biomedical research, plant and animal sciences, and microbiology. For more information, please visit www.pacb.com and follow @PacBio.

Contact
Investors: Trevin Rard
650.521.8450
ir@pacificbiosciences.com

FAQ

What stock options were granted to PACB executives?

Pacific Biosciences granted stock options covering 750,000 shares to COO Mark Van Oene and 320,000 shares to CCO Peter Fromen, both effective January 8, 2021.

What are the exercise prices for PACB stock options?

The exercise prices for the options granted to Mark Van Oene and Peter Fromen are set at $36.70 per share and $32.89 per share, respectively.

What is the purpose of the Inducement Equity Incentive Plan for PACB?

The Inducement Plan is designed to grant equity awards to new employees to incentivize their employment with Pacific Biosciences.

How do the RSUs for PACB executives vest?

The RSUs will vest at a rate of 1/4th on each of the one, two, three, and four-year anniversaries of the grant date.

When were the stock options for PACB executives effective?

The stock options granted to the executives were effective on January 8, 2021.