Form 4: Recursion Pharmaceuticals Director Dean Y. Li Reports Stock and Option Awards

Director Dean Y. Li reports the acquisition of restricted stock units and stock options in Recursion Pharmaceuticals, granted on June 3, 2024, according to the company's Outside Director Compensation Policy.

Summary

• On June 3, 2024, Dean Y. Li, a director of Recursion Pharmaceuticals, reported the acquisition of 13,097 shares of Class A Common Stock and options to purchase 26,193 shares of Class A Common Stock.
• The stock grant was awarded automatically pursuant to the Issuer's Outside Director Compensation Policy.
• The restricted stock units will vest on the earlier of June 3, 2025, or the day prior to the Issuer's 2025 annual meeting of stockholders, contingent upon continued service to the Issuer.
• The options will vest and become exercisable on the earlier of June 3, 2025, or the date of the Issuer's 2025 Annual Meeting of Stockholders, also subject to continued service.
• Following the reported transactions, Li directly owns 72,186 shares of Class A Common Stock.
• Li also indirectly owns 1,422,048 shares through the Dean Li and Ruth Li Revocable Trust, 1,269,796 shares through the Dean Y. Li GRAT, and 421,000 shares through the Dean Y. Li 2021 Family Trust.
• The exercise price of the stock options is $8.59, and they expire on June 3, 2034.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The document simply reports standard compensation practices for a director, aligning their interests with shareholders. There are no explicit negative indicators.

Positives

• The grant of stock and options to a director aligns their interests with those of the shareholders, incentivizing them to work towards the company's success.
• The vesting schedules tied to continued service encourage the director's long-term commitment to the company.

Future Outlook

The restricted stock units and stock options will vest based on continued service to the Issuer, indicating an expectation of ongoing involvement by the director.

Industry Context

Reporting of beneficial ownership changes by company insiders is a standard practice and provides transparency to investors regarding the alignment of management's interests with those of shareholders.

Comparison to Industry Standards

• Director compensation packages, including stock options and restricted stock units, are common in the biotechnology industry to attract and retain talent.
• The vesting schedules are typical, aligning with industry standards for incentivizing long-term commitment.
• Comparing the size of the grant to those of directors at comparable companies like Exscientia or Schrodinger would provide further context.

Stakeholder Impact

• The stock and option grants align the director's interests with those of shareholders, potentially leading to decisions that benefit the company's long-term value.
• The grants do not have an immediate impact on employees, customers, suppliers, or creditors.

Key Dates