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

Rhea-AI Summary

On November 15, 2022, Schrödinger granted 32,165 non-statutory stock options to eight newly hired employees as part of its 2021 Inducement Equity Incentive Plan. The options have an exercise price of $22.27 per share, matching the stock's closing price on the grant date. Vesting for U.S. employees occurs in monthly installments over four years, while international employees will vest annually over three years. Schrödinger utilizes a physics-based computational platform to enhance drug discovery and materials development, with a workforce of around 800 across 70 countries.

Positive

• Granting of stock options may attract talent, enhancing innovation.
• Stock options align employee interests with company performance.

Negative

• None.

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 November 15, 2022, the company granted non-statutory stock options to purchase an aggregate of 32,165 shares of the company’s common stock to eight newly hired employees, including two newly hired employees based outside of the United States. 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 options have an exercise price of $22.27 per share, equal to the closing price of Schrödinger’s common stock on November 15, 2022. Each 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 as follows: (i) for U.S.-based new hires, 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; and (ii) for new hires based outside of the United States, in a series of successive equal annual installments of 1/4 of the original number of shares 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 used 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 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/20221118005034/en/

Investor Contact:

Jaren Madden

ir@schrodinger.com

Source: Schrödinger

FAQ

What date did Schrödinger grant stock options to new employees?

Schrödinger granted stock options on November 15, 2022.

How many shares were involved in the stock option grant by Schrödinger?

A total of 32,165 shares were granted to eight newly hired employees.

What is the exercise price of the stock options granted by Schrödinger?

The exercise price of the stock options is $22.27 per share.

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

The stock options have a ten-year term.

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

The inducement grant serves as a material incentive for the new employees' acceptance of employment.