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

Rhea-AI Summary

Schrödinger (Nasdaq: SDGR) announced the granting of stock options to 14 new employees on July 15, 2021, totaling 32,975 shares. These options, part of the 2021 Inducement Equity Incentive Plan, have an exercise price of $67.46, matching the closing stock price on the grant date. The options vest over four years, with 25% vesting after one year and the remainder vesting monthly over the following three years. This initiative aims to attract talent and is compliant with Nasdaq Listing Rule 5635(c)(4).

Positive

• Granting stock options could enhance employee retention.
• Engagement of new talent supports ongoing business growth.

Negative

• None.

Schrödinger, Inc. (Nasdaq: SDGR), whose physics-based software platform is transforming the way therapeutics and materials are discovered, today reported that on July 15, 2021, the company granted non-statutory stock options to purchase an aggregate of 32,975 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 $67.46 per share, equal to the closing price of Schrödinger’s common stock on July 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 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 450 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/20210716005031/en/

FAQ

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

Schrödinger granted stock options to purchase 32,975 shares to 14 new employees as part of its 2021 Inducement Equity Incentive Plan.

What is the exercise price of the stock options granted to Schrödinger employees?

The exercise price of the stock options is $67.46 per share.

What are the vesting terms for the stock options at Schrödinger?

The stock options vest over four years, with 25% vesting after one year and the remaining vesting in monthly installments over the following three years.

Why did Schrödinger grant stock options to new employees?

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