Form 4: Oric Pharmaceuticals CEO Jacob Chacko Reports Stock Option and Restricted Stock Unit Grants
SEC Form 4 Filing
CEO Jacob Chacko reports the acquisition of stock options and restricted stock units in Oric Pharmaceuticals.
Summary
- On January 2, 2025, Jacob Chacko, the President and CEO of Oric Pharmaceuticals, acquired stock options for 600,000 shares and 100,000 restricted stock units (RSUs).
- The stock options have an exercise price of $8.26 per share and expire on January 1, 2035.
- 25% of the stock options vest on January 2, 2026, with the remaining shares vesting monthly thereafter.
- The RSUs represent a contingent right to receive one share of Oric Pharmaceuticals Common Stock each.
- One-third of the RSUs will vest on each of December 15, 2025, December 15, 2026, and December 15, 2027.
- Following these transactions, Chacko directly owns 600,000 stock options and 100,000 RSUs.
Sentiment
Score: 7
Explanation: The document reflects a standard executive compensation practice, suggesting stability and alignment of interests. The sentiment is neutral to positive.
Positives
- The grant of stock options and RSUs to the CEO aligns his interests with those of the shareholders.
- The vesting schedules encourage long-term commitment from the CEO.
Future Outlook
The document does not contain any specific forward-looking statements beyond the vesting schedules of the options and RSUs.
Industry Context
Stock option and RSU grants are a common practice in the pharmaceutical industry to incentivize and retain key executives. The vesting schedules are typical for such grants.
Comparison to Industry Standards
- Stock option grants are a standard component of executive compensation packages in the pharmaceutical industry.
- Companies like Amgen, Gilead, and Regeneron also utilize stock options and RSUs to incentivize their executives.
- The vesting schedules described are fairly standard, with vesting periods typically ranging from three to four years.
Stakeholder Impact
- Shareholders may view the grants positively as they align the CEO's interests with the company's long-term success.
- Employees may see this as a positive sign of the company's commitment to its leadership.
Key Dates
| Date | Description |
|---|---|
| 01/02/2025 | Date of transaction: Grant of stock options and RSUs |
| 01/02/2026 | First vesting date for 25% of the stock options |
| 12/15/2025 | First vesting date for 1/3 of the RSUs |
| 12/15/2026 | Second vesting date for 1/3 of the RSUs |
| 12/15/2027 | Third vesting date for 1/3 of the RSUs |
| 01/01/2035 | Expiration date of the stock options |
| 01/03/2025 | Date of Form 4 filing |
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