Form 4: Emergent BioSolutions Director DeGolyer Receives Stock and Options Grant

Director Donald W. DeGolyer receives stock and options grant from Emergent BioSolutions Inc. for board and committee service.

Summary

• Donald W. DeGolyer, a director at Emergent BioSolutions Inc., reported changes in beneficial ownership on May 28, 2024.
• On May 23, 2024, DeGolyer acquired 17,430 shares of common stock through a restricted stock unit (RSU) grant and 25,748 stock options.
• The RSUs and stock options were granted under the company's Stock Incentive Plan for board and committee service.
• The RSUs represent the right to receive one share of Emergent BioSolutions Inc. common stock upon vesting.
• The stock options have an exercise price of $5.02 and represent the right to purchase one share of the company's common stock upon vesting.
• Both the RSUs and stock options will vest on the day prior to the one-year anniversary of the grant date, contingent on DeGolyer remaining a member of the board.
• Following the transaction, DeGolyer beneficially owns 136,100 shares of common stock and 25,748 stock options.
• The number of options granted was determined by dividing half of the total non-employee director compensation value by the Black-Scholes value of a single option calculated as of the date of the grant.

Sentiment

Score: 7

Explanation: The document reflects a routine grant of stock and options to a director, indicating a positive alignment of interests but not a significant event impacting the company's overall outlook.

Positives

• The grant of RSUs and stock options aligns the director's interests with those of the shareholders.
• The vesting requirements incentivize continued service on the board of directors.

Future Outlook

The RSUs and stock options will vest on the day prior to the one-year anniversary of the grant date, subject to the reporting person remaining a member of the Company's board of directors through the Annual Grant Vesting Date.

Industry Context

Stock grants and options are common forms of compensation for directors of publicly traded companies, aligning their interests with shareholders and incentivizing performance.

Comparison to Industry Standards

• Director compensation packages, including stock options and RSUs, are common across the biotechnology industry.
• Companies like Moderna, BioNTech, and Novavax also utilize similar equity-based compensation plans for their board members.
• The specific value and vesting schedules of these grants vary based on company size, performance, and individual contributions.

Stakeholder Impact

• The stock and options grant aligns the director's interests with those of the shareholders, potentially leading to better corporate governance and decision-making.
• The vesting requirements incentivize the director to remain on the board, providing stability and experience.

Key Dates