Form 4: Organon & Co. Executive Rachel A. Stahler Acquires Stock Options and Restricted Stock Units

Rachel A. Stahler, Chief Information Officer of Organon & Co., reports the acquisition of stock options and restricted stock units.

Summary

• On March 29, 2024, Rachel A. Stahler, the Chief Information Officer of Organon & Co., acquired 100,762 stock options with an exercise price of $18.80.
• These options vest in three equal installments on March 29, 2025, March 29, 2026, and March 29, 2027.
• Stahler also acquired 24,601 restricted stock units (RSUs), each representing a contingent right to receive one share of Organon common stock.
• These RSUs vest in three equal installments on March 29, 2025, March 29, 2026, and March 29, 2027.
• Following these transactions, Stahler directly owns 100,762 stock options and 24,601 RSUs.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, indicating a positive outlook for incentivizing key personnel. It is neither exceptionally positive nor negative.

Positives

• The grant of stock options and RSUs to a key executive like the Chief Information Officer suggests an incentive alignment with the company's long-term performance.
• The vesting schedule encourages continued service and commitment from the executive over the next three years.

Future Outlook

The vesting schedule of the stock options and RSUs indicates a three-year horizon for incentivizing the executive's performance.

Industry Context

Stock option and RSU grants are common practices in the pharmaceutical industry to attract, retain, and incentivize key executives.

Comparison to Industry Standards

• Companies like Pfizer, Merck, and Johnson & Johnson also use stock options and RSUs as part of their executive compensation packages.
• The vesting schedules and grant sizes are generally aligned with industry benchmarks for similar roles and company sizes.

Stakeholder Impact

• The grant of equity-based compensation aims to align the executive's interests with those of the shareholders, potentially driving long-term value creation.

Key Dates