Form 4: Relay Therapeutics Director Granted Stock Options

Relay Therapeutics Director Habib J Dable was granted 207,931 stock options with an exercise price of $6.86, vesting over 36 months.

Summary

• Habib J Dable, a Director of Relay Therapeutics, Inc. (RLAY), acquired 207,931 stock options.
• The options have an exercise price of $6.86 per share.
• The transaction date for the grant was November 4, 2025.
• The options will vest in thirty-six equal monthly installments starting after November 4, 2025.
• Vesting is contingent upon Mr. Dable's continued service with Relay Therapeutics through each vesting date.
• The expiration date for these stock options is November 3, 2035.
• Following this transaction, Mr. Dable beneficially owns 207,931 derivative securities directly.

Sentiment

Score: 6

Explanation: A routine grant of stock options to a director, aligning their interests with shareholders, which is generally viewed as a neutral to slightly positive event for corporate governance and retention.

Positives

• The grant of stock options aligns the director's financial interests with those of the shareholders, incentivizing long-term performance and value creation.
• The vesting schedule over 36 months encourages the director's continued service and commitment to the company's strategic objectives.

Negatives

• There is no immediate cash benefit to the director from this grant, as it is an option to purchase shares in the future.
• The value of the options is dependent on the future market price of Relay Therapeutics' common stock exceeding the exercise price of $6.86.

Risks

• The market price of Relay Therapeutics' common stock may not appreciate above the exercise price of $6.86, potentially rendering the options worthless.
• The options are subject to forfeiture if the reporting person's service with the Issuer terminates before the vesting conditions are fully met.

Future Outlook

The vesting schedule of the stock options over 36 months indicates an expectation of continued service from the director, aligning future performance incentives with long-term company goals.

Industry Context

The grant of stock options is a common form of executive and director compensation in the biotechnology and pharmaceutical industries, aiming to attract and retain talent while aligning leadership interests with shareholder value creation. This practice is standard for companies like Relay Therapeutics, which often rely on long-term equity incentives.

Stakeholder Impact

• Shareholders: The grant aligns the director's interests with shareholder value creation, as the options gain value only if the stock price increases.
• Employees: This transaction is specific to a director's compensation and does not directly impact the broader employee base, though it reflects the company's compensation philosophy.

Next Steps

• The stock options will begin vesting in 36 equal monthly installments after November 4, 2025, subject to the director's continued service.

Key Dates

Keywords

Relay Therapeutics, RLAY, Stock Options, Insider Transaction, Director Compensation, SEC Form 4, Equity Grant, Vesting Schedule