Schrödinger Reports Inducement Grants under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Schrödinger, Inc. (Nasdaq: SDGR) announced the granting of stock options and restricted stock units (RSUs) to new employees as part of its 2021 Inducement Equity Incentive Plan. On April 14, 2023, the company issued a non-statutory stock option for 2,400 shares with an exercise price of $27.49, equal to the closing stock price on that date. Additionally, 1,800 RSUs were granted. Both grants are intended to facilitate employee retention and motivation, with vesting schedules over four years. Schrödinger utilizes a physics-based computational platform to expedite drug and material discovery, serving global biopharmaceutical, industrial, and academic sectors. Founded in 1990, it employs approximately 800 individuals and collaborates with organizations in over 70 countries.

Positive

• New stock options and RSUs granted to attract and retain talent.
• Stock options valued at a competitive exercise price of $27.49.
• Vesting schedules designed to promote employee retention over four years.

Negative

• Limited details on the financial implications of stock option grants.
• -

NEW YORK--(BUSINESS WIRE)-- Schrödinger, Inc. (Nasdaq: SDGR), whose physics-based computational platform is transforming the way therapeutics and materials are discovered, today reported that on April 14, 2023, the company granted (i) a non-statutory stock option to purchase 2,400 shares of the company’s common stock to one newly hired employee and (ii) restricted stock units (RSU) with respect to 1,800 shares of the company’s common stock to one newly hired employee. These grants were made pursuant to the company’s 2021 Inducement Equity Incentive Plan, were approved by the compensation committee of the board of directors pursuant to a delegation by the company’s board of directors, and were made as a material inducement to such employees’ acceptance of employment with the company in accordance with Nasdaq Listing Rule 5635(c)(4) as a component of his or her employment compensation.

The stock option has an exercise price of $27.49 per share, equal to the closing price of Schrödinger’s common stock on April 14, 2023. The stock option has a ten-year term and vests over four years, with 25 percent of the shares underlying the option vesting when the employee completes 12 months of continuous service measured from the employment start date and the balance of the shares vesting in a series of successive equal monthly installments of 1/48 of the original number of shares upon the employee’s completion of each additional month of service over the 36-month period following the first anniversary of the employment start date.

The RSUs vest over four years, with 25 percent of such RSUs vesting when the employee completes 12 months of continuous service measured from the vesting commencement date, and the balance of the RSUs vesting in a series of successive equal yearly installments of 1/4 of the original number of RSUs upon the employee’s completion of each additional year of service over the three-year period following the first anniversary of the employment start date.

The inducement grants are subject to the terms and conditions of award agreements covering the grants and the company’s 2021 Inducement Equity Incentive Plan.

About Schrödinger

Schrödinger is transforming the way therapeutics and materials are discovered. Schrödinger has pioneered a physics-based computational platform that enables discovery of high-quality, novel molecules for drug development and materials applications more rapidly and at lower cost compared to traditional methods. The computational platform is licensed by biopharmaceutical and industrial companies, academic institutions, and government laboratories around the world. Schrödinger’s multidisciplinary drug discovery team also leverages the software platform to advance a portfolio of collaborative and proprietary programs to address unmet medical needs.

Founded in 1990, Schrödinger has approximately 800 employees and is engaged with customers and collaborators in more than 70 countries. To learn more, visit www.schrodinger.com, follow us on LinkedIn, or visit our blog, Extrapolations.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230419005155/en/

Investor:

Jaren Madden

ir@schrodinger.com

Source: Schrödinger, Inc.

FAQ

What stock grants were made by Schrödinger on April 14, 2023?

On April 14, 2023, Schrödinger granted a stock option for 2,400 shares and restricted stock units for 1,800 shares to newly hired employees.

What is the exercise price for Schrödinger's stock options?

The exercise price for the stock options is $27.49 per share.

How long is the term for the stock options granted by Schrödinger?

The stock options have a term of ten years.

What is the purpose of the inducement grants made by Schrödinger?

The inducement grants are made to attract and retain new employees as part of their compensation.

How does Schrödinger's compensation plan support employee retention?

The compensation plan includes vesting schedules over four years, ensuring long-term commitment from employees.