Form 4: Alector Officer Boosts Stake with New Equity Awards

Alector's Principal Accounting Officer, Grace Wong-Sarad, acquired 32,343 restricted stock units and 48,535 stock options.

Summary

• Grace Wong-Sarad, Principal Accounting Officer of Alector, Inc., acquired 32,343 shares of Common Stock in the form of Restricted Stock Units (RSUs) on November 10, 2025.
• These RSUs were acquired at a price of $0 and will vest in 12 equal quarterly installments, commencing on December 1, 2025.
• Following this transaction, Grace Wong-Sarad beneficially owns 135,791 shares of Common Stock.
• Additionally, Grace Wong-Sarad acquired 48,535 Employee Stock Options on November 10, 2025, with an exercise price of $1.31 per share.
• These stock options will vest in 48 equal monthly installments, beginning on December 10, 2025, and have an expiration date of November 9, 2035.
• Following this transaction, Grace Wong-Sarad beneficially owns 48,535 derivative securities (stock options).

Sentiment

Score: 7

Explanation: The filing reports an insider acquisition of equity awards, which is generally viewed positively as it aligns management's interests with shareholders. It does not contain any negative news or financial performance data.

Positives

• The acquisition of restricted stock units and stock options by a Principal Accounting Officer indicates increased alignment of management's interests with those of shareholders.
• The grants are part of executive compensation, which can incentivize long-term performance and retention of key personnel.

Future Outlook

The vesting schedules for both the restricted stock units and employee stock options extend several years into the future, indicating a long-term incentive structure for the Principal Accounting Officer.

Industry Context

The granting of restricted stock units and stock options to key executives is a standard practice in the biotechnology and pharmaceutical industries, aiming to align executive incentives with long-term company performance and shareholder value creation.

Comparison to Industry Standards

• The use of RSUs and stock options as a component of executive compensation is a common practice across the biotech and tech sectors, comparable to compensation structures at companies like Biogen, Amgen, or Regeneron, which frequently use equity awards to attract and retain top talent.
• The vesting schedules (quarterly for RSUs, monthly for options over multiple years) are typical for long-term incentive plans designed to encourage sustained performance and executive retention.

Stakeholder Impact

• Shareholders: The equity awards align the Principal Accounting Officer's financial interests with long-term shareholder value, potentially fostering more prudent financial management and strategic decisions.
• Employees: Standard executive compensation practices can set a precedent for broader employee incentive programs, though this filing specifically pertains to a senior officer.

Next Steps

• The 32,343 Restricted Stock Units will begin vesting in 12 equal quarterly installments starting December 1, 2025.
• The 48,535 Employee Stock Options will begin vesting in 48 equal monthly installments starting December 10, 2025.

Key Dates

Keywords

Alector, ALEC, Form 4, Insider Transaction, Restricted Stock Units, Stock Options, Executive Compensation, Equity Awards