Form 4: Altimmune CFO Awarded Stock Options and Restricted Stock Units

Altimmune's Chief Financial Officer, Gregory L. Weaver, was granted stock options and restricted stock units as part of his compensation.

Summary

• Gregory L. Weaver, the Chief Financial Officer of Altimmune, Inc., was granted stock options to purchase 225,000 shares of common stock at an exercise price of $7.35.
• These options vest over four years, with 25% vesting on November 11, 2025, and the remainder vesting monthly over the following 36 months.
• Mr. Weaver also received 75,000 restricted stock units (RSUs), each representing one share of common stock.
• These RSUs vest over four years, with 25% vesting on November 11, 2025, and the remainder vesting annually over the following three years.
• Both the stock options and RSUs are subject to Mr. Weaver's continued service with the company.

Sentiment

Score: 7

Explanation: The document reflects a standard compensation practice, indicating a positive but not extraordinary event. The grants are a positive sign of alignment between management and shareholders.

Positives

• The grant of stock options and RSUs aligns the CFO's interests with those of the shareholders.
• The vesting schedule encourages long-term commitment from the CFO.
• The grants are a form of compensation that does not require immediate cash outlay from the company.

Risks

• The value of the stock options and RSUs is dependent on the future performance of Altimmune's stock price.
• If the stock price does not increase, the value of these grants may be limited.
• The vesting of the options and RSUs is contingent on the CFO's continued employment, creating a potential risk of loss if he leaves the company before vesting is complete.

Future Outlook

The vesting of the stock options and RSUs is contingent on the CFO's continued service, suggesting a long-term commitment.

Industry Context

Equity compensation is a common practice for publicly traded companies to incentivize and retain key executives.

Comparison to Industry Standards

• The vesting schedule of four years with a cliff vest of 25% after one year is a common practice in the biotechnology industry.
• Many companies in the biotech sector use a combination of stock options and restricted stock units to compensate their executives.
• The specific number of options and RSUs granted is likely based on the CFO's role, experience, and the company's overall compensation strategy, which is typical for companies of this size and stage.

Stakeholder Impact

• Shareholders may view the grants as a positive sign of management's commitment.
• Employees may see this as a positive sign of the company's financial health and commitment to its leadership.
• The grants do not have a direct impact on customers, suppliers, or creditors.

Key Dates

Keywords

stock options, restricted stock units, equity compensation, executive compensation, vesting, Altimmune, CFO, Gregory L. Weaver