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

Rhea-AI Summary

Schrödinger, Inc. (Nasdaq: SDGR) announced the granting of non-statutory stock options for 42,425 shares to 17 new employees on March 15, 2022. This grant, part of the 2021 Inducement Equity Incentive Plan, serves as an inducement for employment acceptance, compliant with Nasdaq Listing Rule 5635(c)(4). The exercise price is set at $28.81 per share, equal to the closing price on the grant date. Options vest over four years, with different vesting schedules for U.S. and India-based hires.

Schrödinger is focused on enhancing drug discovery through its physics-based software platform.

Positive

• Granting of stock options indicates commitment to attracting talent.
• Inducement plan aligns employee interests with shareholders.

Negative

• None.

NEW YORK--(BUSINESS WIRE)-- Schrödinger, Inc. (Nasdaq: SDGR), whose physics-based software platform is transforming the way therapeutics and materials are discovered, today reported that on March 15, 2022, the company granted non-statutory stock options to purchase an aggregate of 42,425 shares of the company’s common stock to 17 newly hired employees, including seven newly hired employees based in India. 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 $28.81 per share, equal to the closing price of Schrödinger’s common stock on March 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 months following the first anniversary of the employment start date; and (ii) for India-based new hires, 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 software 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 software 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 programs and its own pipeline of novel therapeutics to address unmet medical needs.

Founded in 1990, Schrödinger has over 650 employees and is engaged with customers and collaborators in more than 70 countries. To learn more, visit www.schrodinger.com, follow us on LinkedIn and Twitter, or visit our blog, Extrapolations.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220317005090/en/

Investors:

Jaren Madden

ir@schrodinger.com

Source: Schrödinger, Inc.

FAQ

What did Schrödinger announce on March 15, 2022?

Schrödinger announced the grant of non-statutory stock options for 42,425 shares to 17 new employees.

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

The exercise price for the stock options is $28.81 per share.

How long is the vesting period for the stock options at Schrödinger?

The stock options vest over four years.

What is the purpose of the stock option grants at Schrödinger?

The stock option grants serve as a material inducement for the acceptance of employment.