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

Rhea-AI Summary

Schrödinger, Inc. (Nasdaq: SDGR) has granted stock options for 101,715 shares to 30 newly hired employees as an incentive for their employment acceptance. The options were issued under the company’s 2021 Inducement Equity Incentive Plan with an exercise price of $29.82, equal to the closing stock price on April 15, 2022. The vesting period is structured, with U.S. employees vesting monthly over four years, while employees in India and Japan will vest annually over three years. This move aims to enhance talent acquisition and retention as Schrödinger continues to innovate in drug discovery.

Positive

• Grant of stock options to 30 new employees supports talent acquisition.
• Stock options incentivize long-term retention with structured vesting.

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 April 15, 2022, the company granted non-statutory stock options to purchase an aggregate of 101,715 shares of the company’s common stock to 30 newly hired employees, including six newly hired employees based in India and one newly hired employee based in Japan. 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 $29.82 per share, equal to the closing price of Schrödinger’s common stock on April 15, 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 and Japan-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 650 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/20220419005119/en/

Investor contact:

Jaren Madden

ir@schrodinger.com

Source: Schrödinger, Inc.

FAQ

What stock options were granted by Schrödinger on April 15, 2022?

Schrödinger granted stock options to purchase 101,715 shares to 30 newly hired employees.

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

The exercise price of the stock options is $29.82 per share.

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

U.S. employees vest monthly over four years, while those in India and Japan vest annually over three years.

How does the stock option grant affect Schrödinger's talent acquisition?

The stock option grant aims to enhance talent acquisition and retention for the company.