Form 4: Alector Director Kristine Yaffe Reports Significant Equity Grant and Option Award

Alector, Inc. Director Kristine Yaffe reported the acquisition of 28,700 restricted stock units and 9,450 stock options on June 11, 2025, increasing her beneficial ownership in the company.

Summary

• Kristine Yaffe, a Director of Alector, Inc. (ALEC), reported changes in her beneficial ownership of company securities.
• On June 11, 2025, Ms. Yaffe acquired 28,700 shares of Common Stock in the form of Restricted Stock Units (RSUs) at a price of $0.00 per share.
• These RSUs are scheduled to vest on the earlier of June 11, 2026, or the date of the Issuer's next annual meeting of stockholders.
• Following this transaction, Ms. Yaffe beneficially owns 96,409 shares of Common Stock.
• Additionally, on June 11, 2025, Ms. Yaffe acquired 9,450 stock options (right to buy) with an exercise price of $1.63 per share.
• These stock options will vest in 12 equal monthly installments beginning on July 11, 2025, or in full on the earlier of the one-year anniversary of the grant date or the date of the Issuer's next annual meeting of stockholders.
• The stock options have an expiration date of June 10, 2035.
• Following this transaction, Ms. Yaffe beneficially owns 9,450 derivative securities (stock options).
• The transaction was made pursuant to a Rule 10b5-1(c) plan, indicating a pre-arranged trading plan.

Sentiment

Score: 7

Explanation: The grant of restricted stock units and stock options to a director is a positive sign of aligning management's interests with shareholders, though it's a routine compensation event and not indicative of significant operational or financial news.

Positives

• The grant of restricted stock units and stock options to a director aligns management's interests with those of shareholders, as the director's compensation is tied to the company's future performance.
• The transaction was executed under a Rule 10b5-1(c) plan, which demonstrates a pre-arranged and transparent approach to insider trading, reducing concerns about opportunistic trading.

Future Outlook

The acquired restricted stock units are set to vest on the earlier of June 11, 2026, or the date of the Issuer's next annual meeting of stockholders. The stock options will vest in 12 equal monthly installments beginning July 11, 2025, or fully on the earlier of the one-year anniversary of the grant date or the next annual meeting, with an expiration date of June 10, 2035.

Industry Context

This Form 4 filing is a routine disclosure of an insider equity grant, common across all industries for compensating directors and executives. It reflects standard corporate governance practices where equity awards are used to align the interests of company leadership with shareholders.

Corporate Governance

Related Party Transactions

• The acquisition of restricted stock units and stock options by Kristine Yaffe, a Director of Alector, Inc., constitutes a related party transaction as it involves an insider of the company.

Stakeholder Impact

• Shareholders: The equity grants align the director's financial interests with those of the shareholders, potentially incentivizing long-term value creation.
• Employees: While not directly impacted, such grants are part of a broader compensation philosophy that can affect employee morale and retention if perceived as equitable or inequitable.

Next Steps

• Vesting of 28,700 Restricted Stock Units on the earlier of June 11, 2026, or the date of the Issuer's next annual meeting of stockholders.
• Commencement of monthly vesting for 9,450 stock options starting July 11, 2025, or full vesting on the earlier of the one-year anniversary of the grant date or the Issuer's next annual meeting of stockholders.

Key Dates

Keywords

Alector, ALEC, SEC Form 4, Insider Transaction, Restricted Stock Units, RSUs, Stock Options, Equity Grant, Director Compensation, Beneficial Ownership, Rule 10b5-1 Plan