Form 4: IGM Biosciences Director Receives Stock Grant as Quarterly Retainer

Michael Lee, a director at IGM Biosciences, received 1,734 shares of common stock as a quarterly retainer, while also holding 11,056 shares indirectly through Redmile Group, LLC.

Summary

• Michael Lee, a director of IGM Biosciences, received 1,734 shares of common stock as part of his quarterly retainer.
• These shares were granted as fully vested restricted stock units, each representing a right to one share of IGM Biosciences common stock.
• The grant was made under the company's Outside Director Compensation Policy.
• Mr. Lee also holds 11,056 shares indirectly through Redmile Group, LLC, where he is a managing director.
• Mr. Lee disclaims beneficial ownership of these indirectly held shares, as they are held on behalf of Redmile and its affiliates.
• Jeremy Green, the principal of Redmile, may also be deemed to beneficially own these shares, but he also disclaims beneficial ownership except for any pecuniary interest.
• Redmile and Mr. Green are considered directors by deputization due to Mr. Lee's board representation.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, which is generally viewed positively as it aligns interests. There are no indications of negative sentiment.

Positives

• The grant of stock units to the director aligns his interests with the company's performance.
• The use of restricted stock units as compensation can help retain board members.

Management Comments

• Mr. Lee holds these securities as a nominee on behalf, and for the sole benefit, of Redmile and has assigned all economic, pecuniary and voting rights in respect of the securities to Redmile.
• Mr. Lee disclaims beneficial ownership of the securities.
• Redmile and Mr. Green disclaim beneficial ownership of the securities except to the extent of their pecuniary interest therein, if any.

Industry Context

The use of stock grants as part of director compensation is a common practice in the biotechnology industry to align the interests of board members with the company's long-term success.

Comparison to Industry Standards

• Stock-based compensation for directors is a standard practice across the biotechnology industry.
• Companies like Amgen, Gilead, and Regeneron also use stock grants and options as part of their director compensation packages.
• The amount of stock granted is typical for a director's quarterly retainer, though the specific number of shares varies based on company size and performance.

Stakeholder Impact

• The stock grant to the director may be viewed positively by shareholders as it aligns the director's interests with the company's performance.

Key Dates

Keywords

IGM Biosciences, Director Compensation, Stock Grant, Restricted Stock Units, Beneficial Ownership, Redmile Group, Michael Lee, Jeremy Green, Director Deputization