Form 4: Certara CEO William Feehery Awarded Performance Stock Units and Restricted Stock Units

Certara's CEO, William Feehery, received performance stock units (PSUs) and restricted stock units (RSUs) on May 20, 2025, under the company's incentive plans.

Summary

• William F. Feehery, CEO of Certara, Inc., was granted performance stock units (PSUs) and restricted stock units (RSUs) on May 20, 2025.
• The PSUs, numbering 280,716, were granted under the 2025 Long-Term Incentive Plan and represent a conditional right to receive common stock based on the company's total shareholder return through March 31, 2028.
• The number of shares received can range from 0% to 200% of the target amount.
• The RSUs, numbering 187,144, were granted under the 2020 Incentive Plan and represent a right to receive common stock or the cash equivalent.
• These RSUs will vest in three equal installments on April 1, 2026, April 1, 2027, and April 1, 2028.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, which is generally viewed neutrally to positively as it aligns management interests with shareholder value. The sentiment is slightly positive due to the incentive structure.

Positives

• The granting of PSUs aligns executive compensation with shareholder returns, incentivizing performance.
• The vesting schedule of the RSUs promotes long-term retention of the CEO.

Future Outlook

The value of the PSUs is contingent on the company's future performance, specifically its total shareholder return through March 31, 2028.

Industry Context

Granting stock-based compensation is a common practice in the industry to align executive interests with those of shareholders and incentivize long-term value creation.

Comparison to Industry Standards

• Stock-based compensation is a common practice among publicly traded companies, particularly in the technology and pharmaceutical sectors, to incentivize executives.
• Companies like Simulations Plus and Schrödinger, which operate in similar modeling and simulation spaces, also utilize stock options and restricted stock units as part of their executive compensation packages.
• The vesting schedules and performance metrics associated with these grants are typically aligned with industry benchmarks for long-term incentive plans.

Stakeholder Impact

• Shareholders: The PSU component directly ties executive compensation to shareholder returns.
• Employees: The grants may have an indirect positive impact on employee morale by aligning leadership incentives with company success.

Key Dates

Keywords

Certara, William Feehery, PSU, RSU, Incentive Plan, Executive Compensation, Stock Units, Vesting