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

Rhea-AI Summary

Schrödinger, Inc. (Nasdaq: SDGR) announced on October 15, 2021 that it granted stock options for 35,550 shares to 13 new employees, as part of its 2021 Inducement Equity Incentive Plan. The options have an exercise price of $55.36 per share, matching the company's closing stock price on the granting date. These options will vest over four years, with 25% vesting after one year, and the remainder in monthly installments over the following three years. This move aims to attract talent and incentivize long-term commitment from the new hires.

Positive

• Granting options to new employees may attract top talent and enhance retention.
• Stock options exercisable at current market price provide an incentive for employee performance.

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 October 15, 2021, the company granted non-statutory stock options to purchase an aggregate of 35,550 shares of the company’s common stock to 13 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 $55.36 per share, equal to the closing price of Schrödinger’s common stock on October 15, 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 material 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/20211018005144/en/

Investor:

Jaren Madden

ir@schrodinger.com

Source: Schrödinger, Inc.

FAQ

What stock options were granted by Schrödinger on October 15, 2021?

On October 15, 2021, Schrödinger granted stock options to purchase 35,550 shares to 13 newly hired employees.

What is the exercise price of Schrödinger's stock options granted on October 15, 2021?

The exercise price for the stock options is $55.36 per share, equal to the closing stock price on that date.

How long is the vesting period for Schrödinger's stock options granted in 2021?

The stock options have a ten-year term and vest over four years.

What is the purpose of granting stock options to new employees by Schrödinger?

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