Form 4: Ginkgo Bioworks Director Sri Kosuri Reports Stock Option and RSU Awards

Director Sri Kosuri reports the acquisition of stock options and restricted stock units (RSUs) in Ginkgo Bioworks Holdings, Inc.

Summary

• Sri Kosuri, a director of Ginkgo Bioworks Holdings, Inc., reported the acquisition of stock options and restricted stock units on November 6, 2024.
• The stock options are granted at an exercise price of $8.31.
• 60,240 options vest in equal installments over three years from the grant date.
• An additional 30,911 options and 24,067 RSUs vest the day before the next Annual Meeting of Shareholders, contingent on continued service as a Non-Employee Director.
• The Black-Scholes value of the initial option award is $400,000, and the additional initial option award is $200,000.
• Each RSU represents the right to receive one share of Class A Common Stock.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. It reflects standard compensation practices and aligns director interests with shareholders. There are no indications of negative events or concerns.

Positives

• The grant of stock options and RSUs aligns the director's interests with those of the shareholders.
• Vesting schedules incentivize continued service and contribution to the company.

Future Outlook

The vesting of the RSUs and additional initial options is contingent on the Reporting Person continuing in service as a Non-Employee Director through the date immediately prior to the next Annual Meeting of Shareholders.

Industry Context

This filing is a routine disclosure of equity compensation to a company director, common in publicly traded companies to align management and shareholder interests.

Comparison to Industry Standards

• Equity compensation for board members varies widely across the biotechnology industry.
• Companies like Amgen, Biogen, and Regeneron typically offer a mix of stock options, restricted stock units, and cash compensation to their non-employee directors.
• The specific amounts and vesting schedules depend on factors such as company size, performance, and industry benchmarks.
• The Black-Scholes valuation method is a standard approach for valuing stock options in these compensation packages.

Stakeholder Impact

• Shareholders may view the equity grants as a positive sign, aligning the director's interests with the company's long-term success.
• The grants do not have an immediate impact on employees, customers, suppliers, or creditors.

Key Dates