Form 4: Allogene Therapeutics Director Stephen Mayo Granted 95,400 Restricted Stock Units

Allogene Therapeutics, Inc. Director Stephen Mayo was granted 95,400 Restricted Stock Units, which will vest over one year, with receipt of shares deferred.

Summary

• Stephen Mayo, a Director of Allogene Therapeutics, Inc. (ALLO), was granted 95,400 Restricted Stock Units (RSUs) on June 18, 2025.
• Each RSU represents a contingent right to receive one share of the company's Common Stock.
• The RSUs will vest in two equal semi-annual installments over a one-year period, measured from the grant date, subject to Mr. Mayo's continued service through the vesting dates.
• Mr. Mayo has elected to defer the actual receipt of the Common Stock upon vesting of the RSUs pursuant to the Company's Non-Employee Director Compensation Policy.
• The deferral will continue until the earlier of 30 days following his separation from the Board or a change in control of the Company.

Sentiment

Score: 7

Explanation: The grant of Restricted Stock Units to a director is a positive sign of continued alignment between management and shareholder interests, reflecting standard compensation practices.

Positives

• The grant of 95,400 Restricted Stock Units to Director Stephen Mayo aligns his interests with shareholders, as the value of the RSUs is tied to the company's stock performance.
• Mr. Mayo's election to defer the receipt of Common Stock indicates a long-term commitment to the company's success and adherence to the company's compensation policy.

Risks

• The vesting of the Restricted Stock Units is contingent upon Stephen Mayo's continued service, meaning the RSUs could be forfeited if his service terminates before the vesting dates.
• The ultimate value of the RSUs, once vested and converted to common stock, is subject to the market fluctuations of Allogene Therapeutics, Inc. common stock.

Future Outlook

The Restricted Stock Units granted to Director Stephen Mayo are scheduled to vest in two equal semi-annual installments over a one-year period from the grant date of June 18, 2025, contingent on his continued service. The actual receipt of shares will be deferred until his separation from the Board or a change in control.

Industry Context

This Form 4 filing details an individual insider equity grant, which is a standard practice for compensating non-employee directors in the biotechnology industry. Such grants align director interests with long-term shareholder value, a common governance practice across publicly traded companies.

Comparison to Industry Standards

• The grant of Restricted Stock Units (RSUs) to a non-employee director like Stephen Mayo is a common form of equity compensation in the biotechnology and pharmaceutical sectors, similar to practices at companies such as Gilead Sciences, Amgen, or Regeneron Pharmaceuticals.
• The vesting schedule over one year with semi-annual installments is a standard approach to incentivize continued service and align long-term interests.
• The deferral election is a common feature in director compensation policies, allowing for tax planning and further commitment, consistent with best practices in corporate governance.

Corporate Governance

Stakeholder Impact

• Shareholders: The grant of RSUs to a director aligns his interests with shareholders, as the value is tied to stock performance, incentivizing long-term value creation.

Next Steps

• Vesting of 95,400 Restricted Stock Units in two equal semi-annual installments over one year from June 18, 2025.
• Potential receipt of Common Stock upon vesting, subject to Mr. Mayo's deferral election.

Key Dates

Keywords

Allogene Therapeutics, ALLO, Stephen Mayo, Restricted Stock Units, RSU, Director Compensation, SEC Form 4, Equity Grant, Insider Transaction