Form 4: ORIC CEO granted 675k options and 112.5k RSUs

ORIC Pharmaceuticals awarded CEO Jacob Chacko 675,000 stock options at $8.17 and 112,500 RSUs with multi-year vesting beginning in 2026.

Summary

• On 2026-01-02, President & CEO and Director Jacob Chacko received a stock option grant for 675,000 shares at an exercise price of $8.17 per share.
• The stock option expires on 2036-01-01 and vests 25% on 2027-01-02, with the remaining 75% vesting in 36 equal monthly installments thereafter.
• On 2026-01-02, Chacko also received 112,500 RSUs that vest in three equal tranches on 2026-12-15, 2027-12-15, and 2028-12-15.
• Post-transaction holdings reported: 675,000 stock options and 112,500 RSUs held directly.
• Both awards were granted at no cost (price of derivative security $0) consistent with equity grant reporting conventions.
• The form was signed by attorney-in-fact on 2026-01-06.

Sentiment

Score: 6

Explanation: Equity awards are standard and support long-term alignment; no adverse disclosures or unusual terms are present.

Positives

• Multi-year vesting (through at least 2028) supports retention and aligns executive incentives with long-term shareholder value.
• Significant equity exposure (675,000 options at a fixed $8.17 strike) directly links compensation to share price appreciation.
• Balanced mix of options and RSUs provides both long-term upside (options) and time-based value certainty (RSUs).

Negatives

• Potential equity dilution of up to 787,500 shares if all options are exercised and RSUs vest.
• Concentration of a large grant to a single executive increases overhang tied to leadership tenure and performance.

Future Outlook

No financial guidance is provided; the multi-year vesting and 2036 option expiry indicate a long-term retention and alignment focus for the CEO.

Industry Context

Equity-heavy, multi-year CEO compensation structures are standard in biotech, aligning leadership with clinical and regulatory milestones; time-based RSUs paired with 10-year options are typical for retaining executives amid high R&D risk.

Comparison to Industry Standards

• The 10-year option term and time-based vesting mirror common practices at mid-cap oncology biotechs (e.g., Arcus Biosciences, Deciphera Pharmaceuticals, Kura Oncology).
• Annual third-vesting RSUs are a standard structure across biotech peers to balance retention with predictable value delivery.
• A sizable CEO option grant with a fixed strike is consistent with sector norms where upside is tied to pipeline inflection points rather than cash compensation.

Stakeholder Impact

• Shareholders may experience dilution if the options are exercised and RSUs vest (up to 787,500 shares).
• Executive retention and alignment are reinforced through multi-year vesting, potentially supporting strategic continuity.
• No direct impact on creditors or suppliers; effects are primarily equity-ownership related.

Next Steps

• RSU tranche vests on 2026-12-15.
• 25% of stock options vest on 2027-01-02.
• Remaining stock options vest in 36 equal monthly installments after 2027-01-02.
• Subsequent RSU tranches vest on 2027-12-15 and 2028-12-15.

Key Dates

Keywords

Form 4, insider transaction, stock options, RSU, vesting, Oric Pharmaceuticals, ORIC, Jacob Chacko, exercise price $8.17, executive compensation, beneficial ownership