Form 4: Precision BioSciences CEO Michael Amoroso Awarded Restricted Stock Units

Precision BioSciences CEO Michael Amoroso received 208,263 restricted stock units on August 22, 2024, which vest in three equal annual installments starting January 20, 2025.

Summary

• Michael Amoroso, the President and CEO of Precision BioSciences, was granted 208,263 restricted stock units (RSUs) on August 22, 2024.
• These RSUs represent a contingent right to receive one share of Precision BioSciences' common stock per unit.
• The award vests in three substantially equal annual installments, commencing on January 20, 2025.
• Vesting is contingent upon Amoroso's continued service to Precision BioSciences through the applicable vesting dates.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, which is generally viewed positively as it aligns management's interests with shareholders. The sentiment is neutral to slightly positive.

Positives

• The granting of RSUs to the CEO aligns his interests with those of the shareholders, incentivizing him to drive long-term value for the company.
• The vesting schedule encourages continued service and commitment from the CEO.

Risks

• The value of the RSUs is tied to the performance of Precision BioSciences' stock, which is subject to market fluctuations and company-specific risks.
• If the CEO leaves the company before the vesting dates, he will forfeit the unvested RSUs.

Future Outlook

The document does not contain specific forward-looking statements beyond the vesting schedule of the RSUs.

Industry Context

Granting stock-based compensation to executives is a common practice in the biotechnology industry to align management's interests with those of shareholders and incentivize long-term value creation. The size and vesting schedule of the grant are typical for a CEO of a company of Precision BioSciences' size and stage.

Comparison to Industry Standards

• Executive compensation packages in the biotechnology industry often include a mix of salary, bonus, and equity-based awards such as stock options and restricted stock units.
• Companies like CRISPR Therapeutics, Editas Medicine, and Intellia Therapeutics, which are peers of Precision BioSciences, also utilize similar compensation structures to attract and retain top talent.
• The vesting schedule of three years is a standard practice to ensure long-term commitment from the executive.

Stakeholder Impact

• Shareholders: The RSU grant aligns the CEO's interests with shareholder value creation.
• Employees: The grant can boost employee morale by demonstrating the company's commitment to its leadership.

Key Dates