Form 4: Precision Biosciences Grants 50,000 Restricted Stock Units to Chief Research Officer J. Jefferson Smith

Precision Biosciences, Inc. has granted 50,000 restricted stock units to its Chief Research Officer, J. Jefferson Smith, as part of his compensation, vesting over three years.

Summary

• J. Jefferson Smith, Chief Research Officer of Precision Biosciences, Inc. (DTIL), was granted 50,000 Restricted Stock Units (RSUs).
• The transaction date for this grant was June 2, 2025.
• Each RSU represents a contingent right to receive one share of the Issuer's Common Stock.
• The award vests in three substantially equal annual installments, with the first vesting date beginning on February 17, 2026.
• Vesting is contingent upon Mr. Smith's continued service to Precision Biosciences through the applicable vesting dates.

Sentiment

Score: 7

Explanation: The grant of RSUs to a key executive is a positive sign for talent retention and alignment of interests, which is generally viewed favorably. It's a standard compensation practice, not indicative of major positive or negative operational news, hence a neutral-to-positive score.

Positives

• The grant of 50,000 Restricted Stock Units (RSUs) to the Chief Research Officer aligns his interests with long-term shareholder value.
• The vesting schedule over three years encourages retention of key executive talent.

Negatives

• The grant of RSUs represents potential future dilution for existing shareholders when the units vest and convert to common stock.

Risks

• The vesting of the Restricted Stock Units is subject to the Reporting Person's continued service to the Issuer, meaning the company risks losing the executive if service is not continued.

Future Outlook

The Restricted Stock Units granted to the Chief Research Officer are set to vest in three substantially equal annual installments starting February 17, 2026, contingent on his continued service, indicating a planned long-term retention strategy for key management.

Industry Context

The granting of Restricted Stock Units (RSUs) to key executives like the Chief Research Officer is a standard practice in the biotechnology and pharmaceutical industries. This form of equity compensation is widely used to attract, retain, and incentivize top talent by aligning their financial interests with the long-term performance and growth of the company, particularly in research-intensive sectors where innovation and intellectual property are critical.

Comparison to Industry Standards

• The use of Restricted Stock Units (RSUs) as a form of executive compensation is a common practice across the biotechnology and life sciences sectors, comparable to compensation structures seen at companies like Editas Medicine (EDIT) or CRISPR Therapeutics (CRSP), which also utilize equity grants to incentivize scientific leadership.
• The vesting schedule of three substantially equal annual installments is a typical industry standard for RSU grants, designed to promote long-term retention and performance, similar to vesting schedules observed in compensation plans at peer companies.
• The grant of 50,000 RSUs to a Chief Research Officer is within the expected range for a company of Precision Biosciences' size and stage, reflecting a competitive compensation package aimed at retaining high-value scientific expertise.

Stakeholder Impact

• **Shareholders**: Potential future dilution upon vesting of RSUs, but also benefit from incentivized executive performance and retention.
• **Employees**: May view this as a positive sign of executive commitment and a standard practice for executive compensation within the company.

Next Steps

• The Restricted Stock Units will begin vesting in three substantially equal annual installments starting February 17, 2026.
• J. Jefferson Smith must continue his service to Precision Biosciences, Inc. through the applicable vesting dates to receive the shares.

Key Dates

Recommendation

Keywords

Precision Biosciences, DTIL, Restricted Stock Units, RSU, Executive Compensation, J. Jefferson Smith, Chief Research Officer, SEC Form 4, Insider Transaction, Equity Grant