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

Rhea-AI Summary

Schrödinger announced on June 11, 2024, the granting of stock options and restricted stock units (RSUs) under their 2021 Inducement Equity Incentive Plan. This includes 2,400 shares of common stock to a new hire and RSUs for 9,420 shares to seven new hires. The stock options, priced at $21.00 per share, have a 10-year term and vest over four years. The RSUs also vest over four years, with 25% vesting after the first year and the remaining shares vesting annually over the next three years. These grants were made as an employment inducement in accordance with Nasdaq Listing Rule 5635(c)(4).

Positive

• Granting of stock options and RSUs indicates potential employee retention strategies.
• Stock options and RSUs align employee interests with shareholder value.
• The 10-year term of stock options may incentivize long-term commitment.
• The RSUs vesting schedule promotes sustained employee performance.

Negative

• Stock options and RSUs could lead to shareholder dilution.
• The exercise price of $21.00 per share might be seen as high if the market price decreases.
• Granting RSUs and stock options might increase operational expenses.

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 June 11, 2024, 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 (RSUs) with respect to 9,420 shares of the company’s common stock to seven newly hired employees. 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 $21.00 per share, equal to the closing price of the company’s common stock on June 11, 2024. 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 such 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 each such employee’s completion of each additional year of service over the three-year period following the first anniversary of the vesting commencement 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 850 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/20240614979992/en/

Investor:

Allie Nicodemo

allie.nicodemo@schrodinger.com

Source: Schrödinger

FAQ

What stock options did Schrödinger grant on June 11, 2024?

Schrödinger granted a non-statutory stock option for 2,400 shares of common stock to a newly hired employee.

What are the details of the RSUs granted by Schrödinger?

Schrödinger granted RSUs for 9,420 shares of common stock to seven new hires, vesting over four years.

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

The exercise price of the stock options is $21.00 per share.

What is the vesting period for the stock options granted by Schrödinger?

The stock options vest over four years, with 25% vesting after 12 months and the rest vesting monthly over the next three years.

What is the vesting schedule for the RSUs granted by Schrödinger?

The RSUs vest over four years, with 25% vesting after the first year and the remaining vesting annually over the next three years.