Form 4: Natera Director James Healy Acquires Shares in Lieu of Retainer Fees

Director James Healy acquired 177 shares of Natera, Inc. common stock in lieu of quarterly retainer fees.

Summary

• On July 26, 2024, James Healy, a director of Natera, Inc., acquired 177 shares of common stock.
• The acquisition was in lieu of quarterly retainer fees of $19,375 for service on the Issuer's Board of Directors.
• These shares were issued as Restricted Stock Units (RSUs) that were fully vested at the time of issuance.
• Following the transaction, Healy directly owns 45,851 shares of Natera's common stock.
• Healy also indirectly owns 1,550,280 shares through Sofinnova Venture Partners IX, L.P., where he is a managing member of Sofinnova Management IX, L.L.C., the general partner.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. A director acquiring shares, even in lieu of fees, is generally a good sign, indicating confidence in the company's future. The transaction itself is routine and expected.

Positives

• Director's acquisition of shares demonstrates confidence in the company.
• The use of RSUs in lieu of cash retainer fees conserves company cash.

Industry Context

Director stock ownership is a common practice and is used to align the interests of directors with those of shareholders. The use of RSUs is a common form of compensation.

Comparison to Industry Standards

• Director compensation through stock grants is a standard practice among publicly traded companies, aligning director interests with shareholder value.
• Companies like Illumina (ILMN) and Exact Sciences (EXAS) also utilize stock-based compensation for their board members.
• The amount of stock granted in lieu of cash compensation is within the typical range for board retainers in similarly sized biotech companies.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders as it aligns director interests with shareholder value.

Key Dates