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

Rhea-AI Summary

Schrödinger, Inc. (Nasdaq: SDGR) granted non-statutory stock options to 14 new employees totaling 42,850 shares on December 16, 2021, as part of its 2021 Inducement Equity Incentive Plan. The options have an exercise price of $35.04 per share, reflecting the closing stock price on that date. Each option vests over four years, with 25% vesting after the first year and the remainder monthly over the next three years. Schrödinger leverages its physics-based software platform for drug and material discovery, serving clients in over 70 countries.

Positive

• Granting stock options may enhance employee retention and motivation.
• The exercise price aligns with current market value, indicating stability.

Negative

• The issuance of stock options could lead to potential shareholder dilution if exercised.

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 December 16, 2021, the company granted non-statutory stock options to purchase an aggregate of 42,850 shares of the company’s common stock to 14 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 $35.04 per share, equal to the closing price of Schrödinger’s common stock on December 16, 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, follow us on LinkedIn and Twitter, or visit our blog, Extrapolations.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211220005089/en/

Investor contact:

Jaren Madden

ir@schrodinger.com

Source: Schrödinger, Inc.

FAQ

What stock options were granted by Schrödinger on December 16, 2021?

Schrödinger granted 42,850 non-statutory stock options to 14 new employees.

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

The exercise price for the stock options is $35.04 per share.

How do the stock options vest for employees at Schrödinger?

The options vest over four years, with 25% after the first year and monthly vesting over the following three years.

What is the purpose of the stock options granted to new employees at Schrödinger?

The stock options were granted as a material inducement for the employees' acceptance of employment.