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

Rhea-AI Summary

Schrödinger, Inc. (Nasdaq: SDGR) recently announced the granting of non-statutory stock options for 14,300 shares and restricted stock units (RSUs) for 4,350 shares to new employees as part of their 2021 Inducement Equity Incentive Plan. The stock options, priced at $23.83 per share, will vest over four years with specific conditions based on the employees' service duration. RSUs will also vest over four years. This move aims to attract talent and enhance the company's growth in therapeutic and materials discovery, leveraging its advanced computational platform.

Positive

• Attracting talent through competitive stock options and RSUs.
• Stock options priced at $23.83, aligning with the recent closing price.

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 January 16, 2023, the company granted (i) non-statutory stock options to purchase an aggregate of 14,300 shares of the company’s common stock to six newly hired employees, including three newly hired employees based outside of the United States and (ii) restricted stock units (RSUs) with respect to 4,350 shares of the company’s common stock to one newly hired employee. 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 $23.83 per share, equal to the closing price of Schrödinger’s common stock on January 13, 2023. 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 RSUs vest over four years, with 25 percent of such RSUs vesting when the 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 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/20230120005001/en/

Investor:

Jaren Madden

ir@schrodinger.com

Source: Schrödinger

FAQ

What stock options did Schrödinger grant on January 16, 2023?

On January 16, 2023, Schrödinger granted non-statutory stock options to purchase an aggregate of 14,300 shares to new employees.

What are the terms for the stock options issued by Schrödinger?

The stock options have an exercise price of $23.83 per share and vest over four years following specific service conditions.

What is the purpose of the stock grants made by Schrödinger?

The stock grants aim to serve as a material inducement for new employees to accept employment with the company.

How will the restricted stock units (RSUs) vest?

The RSUs will vest over four years, with 25% vesting after 12 months and the remainder in equal installments over the following three years.