Form 4: Precision BioSciences General Counsel Granted 50,000 Restricted Stock Units

Precision BioSciences, Inc. has granted 50,000 restricted stock units to Dario Scimeca, the company's General Counsel and Secretary, as part of his compensation.

Summary

• Dario Scimeca, General Counsel and Secretary of Precision BioSciences, Inc. (DTIL), was granted 50,000 Restricted Stock Units (RSUs).
• The transaction date for this acquisition was June 2, 2025.
• Each RSU represents a contingent right to receive one share of the Issuer's Common Stock.
• The RSUs were acquired at a price of $0, which is typical for equity grants.
• Following this transaction, Dario Scimeca beneficially owns 50,000 derivative securities (RSUs).
• The award vests in three substantially equal annual installments, commencing on February 17, 2026.
• Vesting is contingent upon Mr. Scimeca's continued service to Precision BioSciences through the applicable vesting dates.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive. While it represents a future dilution, it's a standard compensation practice that aligns management incentives with shareholder interests, which is generally viewed favorably for corporate governance and long-term performance.

Positives

• The grant of Restricted Stock Units aligns the interests of the General Counsel and Secretary, Dario Scimeca, with those of the shareholders, as the value of the compensation is tied to the company's stock performance.
• Equity compensation is a standard practice for retaining and incentivizing key executives within publicly traded companies.

Negatives

• The future conversion of these RSUs into common stock will result in a slight dilution of existing shareholders' equity, although this is a common aspect of equity compensation plans.

Risks

• The value of the RSUs to the recipient is dependent on the future market price of Precision BioSciences' common stock, introducing market risk.
• Vesting is subject to continued service, meaning the executive must remain employed by the company to realize the full benefit of the grant.

Future Outlook

The granted Restricted Stock Units are scheduled to vest in three substantially equal annual installments beginning February 17, 2026, contingent on the General Counsel's continued service, indicating future share issuance over the next few years.

Industry Context

The grant of Restricted Stock Units to a key executive like the General Counsel is a standard and widely adopted practice across the biotechnology and broader corporate sectors. It serves as a common mechanism for long-term incentive compensation, aiming to align executive performance with shareholder value creation.

Comparison to Industry Standards

• The use of Restricted Stock Units (RSUs) as a form of executive compensation is consistent with global benchmarks for publicly traded companies, particularly in high-growth or research-intensive sectors like biotechnology.
• Companies such as Moderna, BioNTech, and Gilead Sciences frequently utilize similar equity-based compensation structures to attract and retain top talent.
• The vesting schedule of three annual installments is a common structure designed to encourage long-term commitment and performance, comparable to practices observed at peer companies in the pharmaceutical and biotech industries.

Related Party Transactions

• The grant of 50,000 Restricted Stock Units to Dario Scimeca, an officer (General Counsel and Secretary) of Precision BioSciences, Inc., constitutes a related party transaction as it involves compensation to a key management personnel.

Stakeholder Impact

• Shareholders: Potential future dilution upon vesting and conversion of RSUs into common stock, but also benefit from aligned management incentives.
• Employees (specifically Dario Scimeca): Receives equity compensation, which incentivizes long-term performance and retention.

Next Steps

• The Restricted Stock Units will begin vesting in three substantially equal annual installments starting February 17, 2026, subject to continued service.

Key Dates

Keywords

Precision BioSciences, DTIL, Restricted Stock Units, RSU, Equity Compensation, Insider Transaction, Form 4, Executive Compensation, Corporate Governance