Form 4: Emergent BioSolutions Director Louis W. Sullivan Reports Acquisition of Stock and Options

Director Louis W. Sullivan reports acquisition of restricted stock units and stock options in Emergent BioSolutions Inc.

Summary

• On April 30, 2025, Louis W. Sullivan, a director of Emergent BioSolutions Inc., reported transactions involving the company's securities.
• Sullivan acquired 34,403 shares of common stock through an annual grant of restricted stock units (RSUs) at a price of $0.
• These RSUs will vest on the day prior to the one-year anniversary of the grant date, contingent upon Sullivan remaining on the board.
• Sullivan also acquired 15,824 stock options with an exercise price of $5.45, which also vest on the same annual grant vesting date.
• The number of options granted was determined by multiplying 25% of the total non-employee director compensation value, and then dividing by the Black-Scholes value of a single option calculated as of the date of the grant.
• Following these transactions, Sullivan beneficially owns 139,098 shares of common stock and 41,572 derivative securities.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive as it reflects standard compensation practices for board members, aligning their interests with shareholders. There are no indications of negative events or concerns.

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

This is a standard practice for compensating board members in publicly traded companies, aligning their interests with shareholders through equity ownership.

Comparison to Industry Standards

• Granting stock options and restricted stock units to board members is a common practice among publicly traded companies to incentivize performance and align interests with shareholders.
• The vesting schedules and terms are generally consistent with industry norms for director compensation.
• Comparing the Black-Scholes value used for option grants to similar companies in the biotechnology sector would provide further context.

Stakeholder Impact

• The equity grants align the director's interests with those of the shareholders, potentially leading to decisions that benefit the company's long-term value.
• The compensation structure could impact employee morale positively, as it demonstrates a commitment to aligning leadership incentives with company performance.

Key Dates

Keywords

Emergent BioSolutions, Director, Louis W. Sullivan, Stock Options, RSUs, Beneficial Ownership, Form 4, Securities, Vesting