Form 4: Alector CEO Arnon Rosenthal Granted Equity Awards

Alector, Inc. CEO and Director Arnon Rosenthal was granted 174,167 restricted stock units and 522,500 employee stock options on November 10, 2025.

Summary

• Alector, Inc. CEO and Director Arnon Rosenthal was granted 174,167 shares of common stock in the form of restricted stock units (RSUs) on November 10, 2025, with a transaction price of $0.
• These RSUs will vest in 12 equal quarterly installments, commencing on December 1, 2025.
• Additionally, Mr. Rosenthal was granted 522,500 employee stock options on November 10, 2025, with an exercise price of $1.31 per share and an expiration date of November 9, 2035.
• The employee stock options will vest in 48 equal monthly installments, beginning on December 10, 2025.
• Following these transactions, Mr. Rosenthal directly beneficially owns 2,524,387 shares of common stock and 522,500 employee stock options.
• He also indirectly beneficially owns 1,972,875 shares through The Rosenthal Family Revocable Trust and 652,500 shares each through the Adi Rosenthal 2007 Trust, Noam Rosenthal 2007 Trust, and Shani Rosenthal 2007 Trust.

Sentiment

Score: 7

Explanation: The filing reports significant equity grants to the CEO, which is generally a positive signal as it aligns management's interests with long-term shareholder value. It reflects ongoing commitment and incentivization of key leadership.

Positives

• The CEO and Director, Arnon Rosenthal, received a significant grant of 174,167 restricted stock units and 522,500 employee stock options, aligning his interests with long-term shareholder value.
• The grants demonstrate continued commitment and incentivization of key management.

Future Outlook

The grants of restricted stock units and employee stock options include future vesting schedules extending through December 2025 and beyond, indicating a long-term incentive structure for the CEO.

Industry Context

Equity grants to executive officers are a standard practice in the biotechnology and pharmaceutical industries, particularly for companies like Alector, Inc. (ALEC) which are often in development stages. Such grants are designed to align management's long-term incentives with shareholder value creation, especially given the extended timelines for drug development and commercialization.

Comparison to Industry Standards

• The structure of equity compensation, including both restricted stock units (RSUs) and stock options with multi-year vesting schedules, is consistent with common practices for executive compensation in the biotech sector.
• The grant size for a CEO of a publicly traded biotech company, while substantial, falls within typical ranges for incentivizing leadership in a high-risk, high-reward industry. Specific comparable companies or projects are not mentioned in the filing, but similar compensation packages are observed at peer companies focused on neurological diseases or early-stage drug development.

Related Party Transactions

• The reporting person, Arnon Rosenthal, serves as trustee for The Rosenthal Family Revocable Trust, the Adi Rosenthal 2007 Trust, the Noam Rosenthal 2007 Trust, and the Shani Rosenthal 2007 Trust, through which he indirectly holds a significant number of shares. These trusts represent related party holdings.

Stakeholder Impact

• Shareholders: The equity grants align the CEO's financial interests with long-term shareholder value, potentially fostering greater commitment to company performance.
• Employees: The grants to the CEO may signal stability in leadership and a commitment to long-term growth, which can positively impact employee morale and retention.

Next Steps

• Restricted stock units will begin vesting in 12 equal quarterly installments starting December 1, 2025.
• Employee stock options will begin vesting in 48 equal monthly installments starting December 10, 2025.

Key Dates

Recommendation

This Form 4 filing reports routine equity compensation grants to the CEO, which is a positive signal of management's long-term alignment with the company. However, it does not provide new fundamental information about the company's operational performance, financial health, or strategic direction that would warrant a change in investment thesis. Therefore, a 'hold' recommendation is appropriate, maintaining current positions while awaiting further operational updates.

Keywords

Alector Inc., ALEC, Arnon Rosenthal, CEO, Director, Restricted Stock Units, RSUs, Stock Options, Equity Grant, Insider Ownership, Compensation, Beneficial Ownership