Form 4: Sage Therapeutics Director James Frates Receives Stock Options in Lieu of Cash Retainer

Director James Frates of Sage Therapeutics receives stock options in lieu of cash retainers for board service during 2025.

Summary

• James M Frates, a director at Sage Therapeutics, received stock options on January 3, 2025, in lieu of cash retainers for his service on the board during 2025.
• The stock option award is for 19,154 shares with an exercise price of $6.14 per share.
• The options were granted under the Sage Therapeutics, Inc. 2024 Equity Incentive Plan and will vest in full on December 31, 2025, contingent upon continued service.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The granting of stock options is a routine part of director compensation and suggests alignment of interests with shareholders.

Positives

• The director's decision to receive stock options instead of cash may signal confidence in the company's future performance.

Future Outlook

The stock options will vest on December 31, 2025, contingent upon the director's continued service.

Industry Context

Director compensation packages often include stock options to align the interests of directors with those of shareholders. This is a fairly standard practice in the biotech industry.

Comparison to Industry Standards

• Stock option grants are a common component of director compensation in publicly traded companies, particularly in the biotech sector.
• Companies like Amgen, Gilead Sciences, and Biogen also utilize stock options as part of their director compensation packages.
• The specific number of options and vesting schedules vary based on company size, performance, and industry benchmarks.

Stakeholder Impact

• Shareholders may view the stock option grant positively as it aligns the director's interests with the company's long-term success.

Key Dates