Form 4: RELMADA COO Kelly Granted 828K Stock Appreciation Rights

RELMADA THERAPEUTICS, INC. COO and Director Paul Edward Kelly was granted 828,000 stock appreciation rights with an exercise price of $4.06, vesting quarterly starting March 2026.

Summary

• Paul Edward Kelly, Chief Operating Officer and Director of RELMADA THERAPEUTICS, INC. (RLMD), was granted 828,000 Stock Appreciation Rights (SARs).
• The transaction date for this grant was December 12, 2025.
• Each SAR has an exercise price of $4.06.
• The SARs will vest in 16 equal quarterly installments, commencing on March 12, 2026.
• The expiration date for these SARs is December 12, 2035.
• Following this transaction, Mr. Kelly beneficially owns 828,000 derivative securities directly.

Sentiment

Score: 7

Explanation: The grant of Stock Appreciation Rights is a positive development for executive incentive alignment and retention, reflecting a standard compensation practice. It does not directly indicate operational performance or financial results, hence a moderately positive score for corporate governance and management alignment.

Positives

• The grant of Stock Appreciation Rights aligns management's incentives with shareholder value creation, as the value of SARs increases with the company's stock price.
• The long vesting schedule (16 quarterly installments) and expiration date (2035) indicate a long-term commitment from the COO to the company's performance.

Future Outlook

The grant of Stock Appreciation Rights with a multi-year vesting schedule indicates a forward-looking compensation strategy designed to incentivize long-term performance and retention of key executives. The value realized by the COO will be directly tied to the future appreciation of RELMADA's common stock above the $4.06 exercise price.

Industry Context

The grant of Stock Appreciation Rights is a common form of executive compensation in the biotechnology and pharmaceutical industries, aiming to align the interests of executives with those of shareholders by tying compensation to stock performance. This practice is standard for incentivizing leadership in growth-oriented sectors.

Comparison to Industry Standards

• Stock Appreciation Rights (SARs) are a widely used equity compensation tool, similar to stock options, in the biotech and pharma sectors for executive incentives. Companies like Amgen, Gilead Sciences, and Moderna frequently utilize similar long-term incentive plans to retain talent and align management with shareholder returns.
• The vesting schedule of 16 equal quarterly installments over four years is a typical structure for executive equity grants, promoting long-term commitment and performance, comparable to practices at peer companies in the industry.

Corporate Governance

Stakeholder Impact

• Shareholders: The grant of SARs aims to align the COO's financial interests with shareholder returns, potentially leading to more focused efforts on increasing stock value.
• Employees: While not directly impacting all employees, executive compensation structures can influence overall company culture and perception of leadership commitment.

Next Steps

• The Stock Appreciation Rights will begin vesting on March 12, 2026, in 16 equal quarterly installments.
• Paul Edward Kelly will continue to hold his roles as COO and Director, with his compensation now further tied to the company's stock performance.

Key Dates

Keywords

RELMADA THERAPEUTICS, RLMD, Stock Appreciation Rights, SARs, Executive Compensation, Insider Transaction, Paul Edward Kelly, Form 4