Form 4: Invivyd Director Bolno Receives 100,000 Stock Options

Invivyd, Inc. Director Paul Bolno was granted 100,000 stock options with an exercise price of $1.22, vesting over a three-year period.

Summary

• Paul Bolno, a Director of Invivyd, Inc. (IVVD), was granted 100,000 stock options.
• The options have an exercise price of $1.22 per share.
• The grant date for these options was September 22, 2025.
• The options will vest over a three-year period: one-third on the first anniversary of the grant date, and 1/36th of the total shares vesting in substantially equal monthly installments thereafter.
• The vesting is subject to Paul Bolno's continuous service through each vesting date.
• The expiration date for these options is September 21, 2035.
• Following this transaction, Paul Bolno beneficially owns 100,000 derivative securities directly.

Sentiment

Score: 7

Explanation: The grant of stock options to a director is a positive event for aligning interests, but it is a routine compensation matter and does not indicate extraordinary news. The potential for future dilution is a minor negative, but standard for equity compensation.

Positives

• The grant of stock options aligns the director's financial interests with the long-term performance of Invivyd, Inc.
• Equity compensation is a common method to incentivize directors to contribute to shareholder value creation and retain key talent.

Negatives

• The issuance of new stock options represents potential future dilution for existing shareholders if the options are exercised.

Risks

• The value of the stock options is dependent on the future market price of Invivyd, Inc. common stock exceeding the exercise price of $1.22.
• If the company's stock price does not perform well, the options may not become in-the-money, reducing their incentive value for the director.

Future Outlook

The stock option grant is designed to incentivize the director's continuous service and align their interests with the company's long-term performance, as the options vest over a three-year period contingent on continued service.

Industry Context

The grant of stock options to directors is a standard practice in the biotechnology and pharmaceutical industry, as well as across many public companies, to attract, retain, and motivate key personnel by linking their compensation to company performance.

Comparison to Industry Standards

• The grant of stock options as part of director compensation is a widely accepted practice across industries, including biotechnology, aligning director incentives with shareholder returns.
• The vesting schedule, typically over several years, is common for equity awards, ensuring long-term commitment from the director.
• The exercise price being set at the market price on the grant date (or a nominal value for the option itself) is standard for incentive stock options.

Corporate Governance

Related Party Transactions

• The grant of 100,000 stock options to Paul Bolno, a Director of Invivyd, Inc., constitutes a related party transaction as it involves compensation between the company and a member of its board.

Stakeholder Impact

• **Shareholders**: Potential for future dilution upon exercise of options, but also benefit from increased alignment of director's interests with long-term company performance.
• **Director (Paul Bolno)**: Receives significant equity compensation, incentivizing continued service and contribution to the company's success.

Next Steps

• The stock options will begin vesting on September 22, 2026, with one-third of the shares vesting on this date.
• Subsequent vesting will occur in substantially equal monthly installments for the remainder of the three-year period, subject to continuous service.

Key Dates

Recommendation

This Form 4 reports a routine stock option grant to a director, which is a standard compensation practice designed to align management interests with shareholders. It does not present new information that would fundamentally alter the investment thesis for Invivyd, Inc., thus a 'hold' recommendation remains appropriate based solely on this filing.

Keywords

Invivyd, IVVD, stock option, director compensation, equity grant, Paul Bolno, insider transaction, SEC Form 4, corporate governance