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

Rhea-AI Summary

Schrödinger, Inc. (Nasdaq: SDGR) announced the grant of non-statutory stock options for 45,050 shares to 15 newly hired employees on September 17, 2021. This initiative, part of the 2021 Inducement Equity Incentive Plan, aims to attract talent and is compliant with Nasdaq Listing Rule 5635(c)(4). Each option has an exercise price of $62.42, equal to the stock's closing price on the grant date. The options vest over four years, incentivizing employee retention and long-term commitment.

Positive

• Grants of 45,050 stock options can enhance employee retention and attract talent.
• Non-statutory stock options are part of a strategy to motivate new hires.

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 September 17, 2021, the company granted non-statutory stock options to purchase an aggregate of 45,050 shares of the company’s common stock to 15 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 options have an exercise price of $62.42 per share, equal to the closing price of Schrödinger’s common stock on September 17, 2021. 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 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. 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 and follow us on LinkedIn and Twitter.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210922005089/en/

Investors:

Jaren Madden

ir@schrodinger.com

Source: Schrödinger, Inc.

FAQ

What stock options did Schrödinger grant on September 17, 2021?

Schrödinger granted non-statutory stock options to purchase 45,050 shares of common stock to 15 new employees.

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

The exercise price for the stock options is $62.42 per share.

How do the stock options vest for new employees at Schrödinger?

The stock options vest over four years, with 25% vesting after the first year and the remainder in monthly installments over the next three years.

What plan were the stock options granted under?

The stock options were granted under Schrödinger's 2021 Inducement Equity Incentive Plan.

What Nasdaq rule does Schrödinger's employee stock option grant comply with?

The grant complies with Nasdaq Listing Rule 5635(c)(4).