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

Rhea-AI Summary

Schrödinger (Nasdaq: SDGR) announced on May 16, 2024, the granting of restricted stock units (RSUs) for 4,090 shares of its common stock to three new employees under the 2021 Inducement Equity Incentive Plan. These grants were approved by the compensation committee and serve as a material inducement for employment as per Nasdaq Listing Rule 5635(c)(4). The RSUs vest over four years, with 25% vesting after 12 months of continuous service and the remaining 75% vesting in equal installments over the subsequent three years. The grants are subject to the terms of award agreements and the company’s equity plan.

Positive

• Granting of RSUs could attract and retain talented employees, enhancing company performance.
• The structured vesting schedule incentivizes long-term employment and contribution.

Negative

• Issuing new shares for RSUs may result in minor shareholder dilution.
• Long vesting period might not immediately impact employee performance.

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 May 16, 2024, the company granted restricted stock units (RSUs) with respect to 4,090 shares of the company’s common stock to three 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 RSUs vest over four years, with 25 percent of such RSUs vesting when such 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 each such employee’s completion of each additional year of service over the three-year period following the first anniversary of the vesting commencement 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 licensed 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 a portfolio of collaborative and proprietary programs to address unmet medical needs.

Founded in 1990, Schrödinger has approximately 850 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/20240517303290/en/

Investor contact:

Allie Nicodemo

allie.nicodemo@schrodinger.com

Source: Schrödinger

FAQ

What did Schrödinger announce on May 16, 2024?

Schrödinger announced the granting of restricted stock units (RSUs) for 4,090 shares of its common stock to three newly hired employees.

How many RSUs were granted by Schrödinger?

Schrödinger granted restricted stock units (RSUs) for 4,090 shares of its common stock.

What is the purpose of the RSU grants by Schrödinger?

The RSU grants are a material inducement for new employees' acceptance of employment with the company.

Under which plan were the RSUs granted by Schrödinger?

The RSUs were granted under Schrödinger’s 2021 Inducement Equity Incentive Plan.

What is the vesting schedule for Schrödinger's RSUs?

25% of the RSUs vest after 12 months of continuous service, with the remaining 75% vesting in equal installments over the next three years.