Form 4: Day One Biopharmaceuticals Director William Grossman Receives Significant Equity Awards

Day One Biopharmaceuticals, Inc. Director William Grossman was granted 22,500 stock options and 15,000 restricted stock units (RSUs) on June 2, 2025, as part of his compensation.

Summary

• William Grossman, a Director of Day One Biopharmaceuticals, Inc. (DAWN), received equity awards on June 2, 2025.
• He was granted 22,500 stock options with an exercise price of $7.01 per share, which will vest at a rate of 1/12th of the total grant on each monthly anniversary, beginning July 2, 2025, subject to his continued service. These options expire on June 1, 2035.
• Additionally, Mr. Grossman was granted 15,000 Restricted Stock Units (RSUs), each representing a contingent right to receive one share of the Issuer's Common Stock for no consideration.
• The RSUs are set to vest 100% on the earlier of June 2, 2026, or the date of the Issuer's 2026 annual meeting of stockholders, also contingent on his continued provision of services.

Sentiment

Score: 6

Explanation: The grant of equity awards to a director is a positive step for corporate governance as it aligns interests, but it is a routine compensation event and not indicative of significant new positive or negative news for the company's operations or financial performance.

Positives

• The grant of equity awards to a director aligns management and director interests with those of shareholders, incentivizing long-term performance and commitment.
• The stock option grant has a 10-year expiration period, providing a long-term incentive horizon for the director.

Future Outlook

NA

Industry Context

This Form 4 filing details a standard equity compensation grant to a director in the biopharmaceutical industry, a common practice to align executive and board interests with shareholder value creation. Such grants are typical for publicly traded companies, especially in sectors like biopharmaceuticals where long-term development cycles necessitate sustained commitment from leadership.

Comparison to Industry Standards

• Equity grants to directors, including stock options and restricted stock units, are a common component of compensation packages across the biopharmaceutical industry.
• While specific grant sizes and vesting schedules vary by company size, stage of development, and individual roles, the structure of these awards (time-based vesting, performance incentives) aligns with general industry practices for attracting and retaining qualified board members.
• Without specific compensation benchmarks for comparable biopharmaceutical companies of similar market capitalization and development stage, a direct quantitative comparison is not feasible from this document alone. However, the use of both options and RSUs represents a diversified approach to equity compensation.

Corporate Governance

Stakeholder Impact

• Shareholders: The equity grants align the director's interests with shareholder value creation, potentially leading to more focused long-term decision-making.

Next Steps

• Continued provision of service by William Grossman to the Issuer for the vesting of equity awards.
• Monthly vesting of stock options beginning July 2, 2025.
• Vesting of RSUs on the earlier of June 2, 2026, or the 2026 annual meeting of stockholders.

Key Dates

Recommendation

Keywords

Day One Biopharmaceuticals, DAWN, William Grossman, SEC Form 4, Insider Transaction, Stock Option, Restricted Stock Unit, RSU, Equity Grant, Director Compensation, Biopharmaceuticals