Form 4: RAPT Therapeutics Director Acquires Stock Options in Lieu of Cash Retainer

Director Mary Ann Gray acquired stock options in RAPT Therapeutics in lieu of a cash retainer for board service.

Summary

• On March 28, 2024, Mary Ann Gray, a director of RAPT Therapeutics, acquired 8,574 stock options.
• The options were granted in lieu of a $65,000 annual cash retainer for board service.
• The exercise price of the options is $8.98.
• The options vest in four equal quarterly installments throughout 2024, starting March 31, 2024, contingent upon continued service as a director.
• The options expire on March 27, 2034.

Sentiment

Score: 6

Explanation: The document itself is neutral, simply reporting a transaction. The sentiment is slightly positive as it shows alignment of the director's interests with shareholders, but it's not a major event.

Positives

• The acquisition of stock options by a director aligns her interests with those of the shareholders.
• Replacing cash compensation with stock options can conserve company cash.

Future Outlook

The document does not contain any specific forward-looking statements regarding the company's future performance.

Industry Context

Granting stock options to directors is a common practice in the biotech industry to align their interests with shareholders and conserve cash.

Comparison to Industry Standards

• Director compensation packages vary widely across the biotech industry depending on company size, stage of development, and board responsibilities.
• Cash retainers for board service can range from $30,000 to over $100,000 annually, while equity grants can vary significantly based on company valuation and performance.
• Comparing RAPT Therapeutics' director compensation structure to peers like BioNTech, Moderna, or smaller biotechs would provide a better understanding of its competitiveness.

Stakeholder Impact

• Shareholders may view the stock option grant positively as it aligns the director's interests with the company's long-term success.
• The company benefits from conserving cash by issuing stock options instead of paying a cash retainer.

Key Dates