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

Director Keith Katkin receives stock options and restricted stock units (RSUs) from Emergent BioSolutions as part of annual compensation for board and committee service.

Summary

• Keith Katkin, a director at Emergent BioSolutions Inc., received an annual grant of 17,430 restricted stock units (RSUs) on May 23, 2024.
• These RSUs will vest on the day prior to the one-year anniversary of the grant date, contingent upon Katkin remaining on the board.
• Katkin also received 25,748 stock options with an exercise price of $5.02, vesting on the same date as the RSUs and expiring on May 22, 2031.
• 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.
• Following these transactions, Katkin beneficially owns 59,872 shares of common stock and 25,748 stock options.

Sentiment

Score: 7

Explanation: The document reflects a routine director compensation event, which is generally neutral to positive as it incentivizes management. The score reflects the standard nature of the announcement.

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 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

Director compensation packages often include a mix of cash, stock, and options to align their interests with shareholders and incentivize long-term value creation. This grant is typical for non-employee directors.

Comparison to Industry Standards

• Director compensation packages in the biotechnology industry typically include a mix of cash retainers, equity grants (stock options and restricted stock units), and committee fees.
• The size and structure of the equity grants are often benchmarked against peer companies to ensure competitiveness and alignment with shareholder interests.
• Companies like Moderna, BioNTech, and Novavax also utilize similar compensation structures for their non-employee directors.

Stakeholder Impact

• The equity grants align the director's interests with those of the shareholders, incentivizing value creation.
• The vesting requirements encourage continued service and commitment to the company's long-term success.

Key Dates