Form 4: Emergent BioSolutions Director Richard Ronald Receives Stock and Options Grant

Director Richard Ronald receives annual grant of restricted stock units and stock options for board service at Emergent BioSolutions.

Summary

• On May 23, 2024, Richard Ronald, a director of Emergent BioSolutions Inc., was granted 17,430 restricted stock units (RSUs) and 25,748 stock options as part of the company's Stock Incentive Plan.
• The RSUs represent the right to receive one share of Emergent BioSolutions common stock upon vesting, and the stock options represent the right to purchase one share of common stock at an exercise price of $5.02.
• Both the RSUs and stock options will vest on the day prior to the one-year anniversary of the grant date, contingent upon Richard Ronald remaining a member of the company's board of directors through that date.
• 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 the transaction, Richard Ronald beneficially owns 71,114 shares of common stock and 25,748 stock options.

Sentiment

Score: 7

Explanation: The document reflects a standard compensation practice, indicating stability and alignment of interests. The sentiment is neutral to positive as it suggests confidence in the company's future.

Positives

• The grant of RSUs and stock options aligns the director's interests with those of the shareholders.
• The vesting schedule incentivizes continued service on the board of directors.
• The use of the Black-Scholes model for option valuation provides a fair basis for determining the number of options granted.

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

Director compensation through stock and options is a common practice in publicly traded companies to align the interests of directors with those of shareholders. The specific terms of the grant, such as vesting schedule and exercise price, are typical for director compensation packages.

Comparison to Industry Standards

• Director compensation packages often include a mix of cash, stock, and options.
• Companies like Moderna and Pfizer also grant stock options and RSUs to their directors as part of their compensation packages.
• The vesting schedules and exercise prices are generally in line with industry standards for director compensation.

Stakeholder Impact

• Shareholders: The grant aligns director interests with shareholder value.
• Employees: The grant reflects the company's commitment to its leadership.
• Company: The grant helps retain and incentivize key personnel.

Key Dates