Form 4: Recursion Pharmaceuticals Director Hershberg Receives Stock Options and Restricted Stock Units

Director Robert Hershberg receives stock options and restricted stock units from Recursion Pharmaceuticals.

Summary

• On June 3, 2024, Robert Hershberg, a director of Recursion Pharmaceuticals, received 26,193 stock options with an exercise price of $8.59, expiring on June 3, 2034.
• Hershberg also received 13,097 restricted stock units.
• These grants were made pursuant to the Issuer's Outside Director Compensation Policy.
• The stock options and 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.
• Following the transaction, Hershberg directly owns 51,716 shares of Class A Common Stock and 26,193 stock options.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. It reflects standard compensation practices for a director, aligning interests with shareholders. There are no indications of negative performance or concerns.

Positives

• The grant of stock options and restricted stock units aligns the director's interests with those of the shareholders.
• The vesting schedule incentivizes continued service to the company.

Future Outlook

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

Industry Context

This type of equity compensation is standard practice for directors of publicly traded companies, aligning their interests with shareholders and incentivizing long-term value creation.

Comparison to Industry Standards

• Director compensation packages typically include a mix of cash retainers, equity grants (stock options and restricted stock units), and other benefits.
• The size and structure of the equity grants are generally benchmarked against peer companies in the biotechnology or pharmaceutical industry to ensure competitiveness and alignment with performance.
• Companies like Amgen, Gilead Sciences, and Biogen often use similar compensation structures for their board members.

Stakeholder Impact

• The grant of equity may have a slightly dilutive effect on existing shareholders.
• The compensation structure incentivizes the director to contribute to the long-term success of the company, benefiting shareholders.

Key Dates