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

Rhea-AI Summary

On January 16, 2022, Schrödinger, Inc. (Nasdaq: SDGR) granted stock options to purchase 80,675 shares of common stock to 80 new employees, primarily in India. This action was part of the company’s 2021 Inducement Equity Incentive Plan and was approved by its compensation committee. The exercise price is set at $30.69 per share, matching the closing price on January 14, 2022. The options have a ten-year term and vest over four years. Schrödinger focuses on transforming therapeutic and material discovery through its innovative software platform.

Positive

• Granting of stock options indicates growth and investment in talent.
• New hires, particularly in India, may enhance the company's operational capacity and regional reach.
• Stock options are aligned with industry standards for employee compensation, potentially improving employee retention.

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 January 16, 2022, the company granted non-statutory stock options to purchase an aggregate of 80,675 shares of the company’s common stock to 80 newly hired employees, including 77 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 $30.69 per share, equal to the closing price of Schrödinger’s common stock on January 14, 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 500 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/20220120005016/en/

Investors:

Jaren Madden

ir@schrodinger.com

Source: Schrödinger, Inc.

FAQ

What stock options were granted by Schrödinger on January 16, 2022?

Schrödinger granted stock options to purchase 80,675 shares to 80 new employees.

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

The exercise price is set at $30.69 per share.

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

The stock options have a ten-year term.

Where are the new employees hired by Schrödinger primarily located?

Most new employees are based in India.

What plan did Schrödinger use to grant stock options?

The options were granted under the company’s 2021 Inducement Equity Incentive Plan.