Form 4: Cara Therapeutics Director Helen M. Boudreau Receives Stock Options and Restricted Stock Units

Director Helen M. Boudreau acquired 150,647 restricted stock units and 195,000 stock options in Cara Therapeutics, Inc. on June 4, 2024.

Summary

• On June 4, 2024, Helen M. Boudreau, a director of Cara Therapeutics, Inc., was granted 150,647 restricted stock units (RSUs).
• Each RSU represents the right to receive one share of Cara Therapeutics common stock.
• These RSUs vest on the earlier of June 4, 2025, or immediately before the company's next annual meeting of stockholders, contingent on Boudreau's continued service as a director.
• Boudreau also received an option to buy 195,000 shares of common stock at an exercise price of $0.664.
• The options also vest on the earlier of June 4, 2025, or immediately before the company's next annual meeting of stockholders, subject to continued service as a director, and expire on June 4, 2034.

Sentiment

Score: 7

Explanation: The document reflects a standard compensation practice for directors, indicating stability and alignment of interests. The sentiment is neutral to slightly positive.

Positives

• The grant of RSUs and stock options aligns the director's interests with those of the shareholders.
• The vesting schedule encourages continued service and commitment from the director.

Future Outlook

The vesting of the RSUs and stock options is contingent upon the director's continued service, suggesting an expectation of ongoing involvement with the company.

Industry Context

Granting stock options and RSUs to directors is a common practice to align their interests with those of shareholders and incentivize long-term commitment.

Comparison to Industry Standards

• Director compensation packages often include a mix of cash, stock options, and restricted stock units.
• The specific terms of these grants, such as vesting schedules and exercise prices, vary depending on the company's size, industry, and performance.
• Comparing Cara Therapeutics' director compensation practices to those of similar-sized biotech companies would provide a more detailed assessment of its competitiveness.

Stakeholder Impact

• Shareholders may view the grants positively as they align director interests with company performance.
• The grants do not have an immediate impact on employees, customers, suppliers, or creditors.

Key Dates