Form 4: Olema Pharma Grants Chief Legal Officer Significant Stock Options

Olema Pharmaceuticals, Inc. has granted its Chief Legal Officer, Shawnte Mitchell, 276,250 stock options with a $25.65 exercise price, including performance-based awards.

Summary

• Shawnte Mitchell, Chief Legal Officer of Olema Pharmaceuticals, Inc. (OLMA), was granted a total of 276,250 stock options on February 2, 2026.
• The grants include 220,000 time-based stock options with an exercise price of $25.65.
• These time-based options vest 25% on February 2, 2027, and then 1/48th of the total shares each month thereafter, contingent on continuous service.
• An additional 56,250 performance-based stock options were granted, also with an exercise price of $25.65.
• The performance options are eligible to vest during two periods: February 2, 2026, to December 31, 2029, and February 2, 2026, to December 31, 2030.
• Vesting for performance options is tied to the Issuer's stock price trading at pre-determined thresholds, measured by a 30-day average closing price, and requires continuous service.
• All granted options have an expiration date of February 1, 2036.
• A Power of Attorney was executed on February 4, 2026, authorizing Amoli Pandya, Sean Bohen, and Shawnte Mitchell to file Section 16 reports on behalf of Shawnte Mitchell.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive development, reflecting standard executive compensation practices designed to align management incentives with shareholder interests, particularly through performance-based awards. It does not, however, provide direct insight into operational performance.

Positives

• The grant of 276,250 stock options provides a significant incentive for the Chief Legal Officer to contribute to the company's long-term success and shareholder value.
• The inclusion of performance-based options directly aligns a portion of the executive's compensation with the achievement of specific stock price milestones, benefiting shareholders if those targets are met.

Negatives

• The long vesting schedules mean the executive's full benefit from these options is deferred over several years, potentially limiting immediate liquidity.

Risks

• The performance-based stock options carry the risk that the company's stock price may not reach the pre-determined thresholds within the specified performance periods, potentially resulting in these options not vesting.
• The value of all stock options is subject to the future market price of Olema Pharmaceuticals, Inc. common stock, which could be lower than the exercise price, rendering the options worthless.

Future Outlook

The future outlook for the Chief Legal Officer's equity compensation is directly tied to the company's stock performance, with specific price thresholds needing to be met for the performance-based options to vest. The time-based options provide a long-term incentive for continuous service.

Industry Context

StockSavvy.ai notes that the granting of stock options, including a mix of time-based and performance-based awards, is a common practice in the biotechnology and pharmaceutical industries to attract, retain, and incentivize key executives. This compensation structure aligns executive interests with long-term shareholder value creation, particularly in companies like Olema Pharmaceuticals, Inc. where significant value creation is often linked to clinical milestones and market perception.

Comparison to Industry Standards

• The grant of stock options to a Chief Legal Officer is a standard component of executive compensation packages across the U.S. biopharmaceutical sector, comparable to practices at companies such as Moderna, BioNTech, or Gilead Sciences, which frequently use equity awards to incentivize leadership.
• The inclusion of performance-based vesting, tied to stock price thresholds, is an increasingly common trend in executive compensation, aiming to more directly link pay to company performance, similar to programs seen at companies like Amgen or Pfizer for their senior executives.

Corporate Governance

Stakeholder Impact

• Shareholders: The grants represent potential future dilution if options are exercised, but also serve to align the Chief Legal Officer's interests with shareholder value creation through long-term incentives and performance targets.
• Employees: The compensation structure for a key executive may set a precedent or reflect the company's overall approach to incentivizing its leadership team.

Next Steps

• Shawnte Mitchell's time-based options will begin vesting on February 2, 2027, and continue monthly thereafter.
• The company's stock price performance will be monitored against pre-determined thresholds for the performance-based options during the periods ending December 31, 2029, and December 31, 2030.
• The Compensation Committee will certify if and when the stock price thresholds for performance options are achieved.

Key Dates

Keywords

Olema Pharmaceuticals, OLMA, Shawnte Mitchell, Chief Legal Officer, Stock Options, Performance Options, Executive Compensation, SEC Form 4, Insider Transaction, Vesting Schedule, Equity Grant