Form 4: C3.ai Director Granted 32,309 Stock Options

C3.ai, Inc. director Michael G. McCaffery was granted 32,309 stock options with an exercise price of $19.16.

Summary

• Michael G. McCaffery, a Director of C3.ai, Inc. (AI), was granted 32,309 stock options.
• The options have an exercise price of $19.16 per share.
• The grant date for these options was October 3, 2025, which also serves as the Vesting Commencement Date.
• The options are scheduled to expire on October 2, 2035.
• Vesting occurs at 12.5% of the shares on the last day of each fiscal quarter for two years, contingent on the reporting person remaining a director and attending regularly scheduled board meetings in person.
• If the director fails to attend a meeting, vesting for that quarter's shares is suspended, but these suspended shares may vest after the two-year anniversary if attendance requirements are met in subsequent periods.

Sentiment

Score: 7

Explanation: The grant of stock options to a director is a standard compensation practice that aligns the director's interests with long-term shareholder value. It is a positive for corporate governance and incentivization, but not a significant market-moving event on its own.

Positives

• The grant of stock options aligns the director's financial interests with the long-term performance and shareholder value of C3.ai, Inc.
• The vesting schedule incentivizes continued service and active participation in board meetings by the director.

Risks

• The vesting of the stock options is contingent upon the director's continued service and in-person attendance at regularly scheduled board meetings, posing a risk of forfeiture if these conditions are not met.
• The value of the options is dependent on the future stock price of C3.ai, Inc. exceeding the exercise price of $19.16.

Future Outlook

The grant of these stock options is a forward-looking incentive designed to motivate the director to contribute to the company's long-term success and ensure continued engagement through board meeting attendance.

Industry Context

The grant of stock options to directors is a common practice in the technology and artificial intelligence sectors, serving as a key component of executive and director compensation packages to align leadership interests with shareholder returns.

Corporate Governance

Stakeholder Impact

• Shareholders: Benefit from increased alignment of the director's interests with long-term company performance.
• Director: Receives equity compensation that incentivizes continued service and active engagement.

Next Steps

• The director is expected to continue their service and attend regularly scheduled board meetings to fulfill the vesting conditions of the options.

Key Dates

Recommendation

This Form 4 reports a routine grant of stock options to a director as part of their compensation. While it aligns the director's interests with shareholders, it does not provide new fundamental information to significantly alter an investment thesis or warrant a strong buy/sell recommendation based solely on this filing.

Keywords

C3.ai, AI, Form 4, Stock Option, Director, Equity Grant, Executive Compensation, Michael G McCaffery