Form 4: Applied Therapeutics Executive Receives 300,000 Restricted Stock Units

Constantine Chinoporos, Chief Operating Officer and Chief Business Officer of Applied Therapeutics, Inc., was granted 300,000 compensatory Restricted Stock Units (RSUs) on December 28, 2023.

Summary

• Constantine Chinoporos, Chief Operating Officer and Chief Business Officer of Applied Therapeutics, Inc., received 300,000 compensatory Restricted Stock Units (RSUs) on December 28, 2023.
• These RSUs were granted under the company's 2019 Equity Incentive Plan.
• The RSUs represent a contingent right to receive one share of Applied Therapeutics' common stock per unit.
• Vesting occurs as follows: one-fourth (1/4th) on December 28, 2024, and one thirty-sixth (1/36th) of the remaining shares each month thereafter, contingent upon continued service.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, indicating stability and alignment of interests. The vesting schedule promotes long-term commitment.

Positives

• The grant of RSUs aligns the executive's interests with those of the shareholders, incentivizing continued service and performance.
• The vesting schedule encourages long-term commitment from the executive.

Risks

• The value of the RSUs is tied to the performance of Applied Therapeutics' stock, which can be volatile.
• The executive must remain employed by the company to fully vest the RSUs; departure would result in forfeiture of unvested units.

Future Outlook

The vesting schedule suggests a commitment to long-term value creation at Applied Therapeutics.

Industry Context

Equity compensation is a common practice in the biotechnology industry to attract and retain key talent, aligning their interests with the company's long-term success.

Comparison to Industry Standards

• RSU grants are a standard form of executive compensation in the biotech industry, often used by companies like Amgen, Gilead, and Biogen.
• The vesting schedule of one-fourth after one year followed by monthly vesting is a typical arrangement to incentivize continued employment.

Stakeholder Impact

• Shareholders may view the RSU grant positively as it incentivizes the executive to drive long-term value.
• Employees may see the grant as a sign of the company's commitment to its leadership team.

Key Dates