Form 4: Scholar Rock Director Joshua Reed Receives Significant Equity Compensation Grant

Scholar Rock Holding Corp. Director Joshua Reed was granted 7,632 restricted stock units and 9,206 stock options as part of his equity compensation, aligning his interests with shareholders.

Summary

• Joshua Reed, a Director of Scholar Rock Holding Corp. (SRRK), reported changes in his beneficial ownership of company securities.
• On May 22, 2025, Mr. Reed acquired 7,632 shares of Common Stock in the form of Restricted Stock Units (RSUs) at a price of $0.
• These RSUs are contingent rights to receive common stock upon vesting, which occurs on the earlier of June 15, 2026, or the date of the Issuer's next Annual Meeting, subject to continued service.
• Additionally, Mr. Reed acquired 9,206 stock options (right to buy) with an exercise price of $30.46 per share.
• These stock options vest and become fully exercisable on the earlier of the first anniversary following the grant date or the date of the Issuer's next Annual Meeting, subject to continued service.
• Following these transactions, Mr. Reed beneficially owns a total of 21,132 shares of Common Stock, which includes 13,500 direct shares and the newly acquired 7,632 RSUs.
• He also beneficially owns 9,206 stock options.

Sentiment

Score: 7

Explanation: The sentiment is positive as a director receiving equity compensation aligns their interests with shareholders, indicating continued commitment and incentivizing long-term performance. This is a routine and expected event for board members.

Positives

• The grant of restricted stock units and stock options to Director Joshua Reed aligns his financial interests with those of the company's shareholders, incentivizing long-term performance.
• The acquisition of equity compensation at a $0 price for RSUs and a specified exercise price for options is a standard practice for director compensation, indicating continued commitment.

Future Outlook

The acquired Restricted Stock Units and Stock Options are subject to future vesting, contingent upon Joshua Reed's continued service to Scholar Rock Holding Corp. through the earlier of specific dates (June 15, 2026 for RSUs, first anniversary of grant for options) or the company's next Annual Meeting.

Industry Context

Equity compensation, including Restricted Stock Units and stock options, is a common practice in the biotechnology and pharmaceutical industries to attract, retain, and incentivize key personnel, including directors, by aligning their long-term interests with company performance and shareholder value.

Stakeholder Impact

• Shareholders: The equity grant to a director helps align management's interests with shareholder value creation, potentially leading to better long-term performance.
• Employees: While not directly impacting all employees, such compensation practices can signal a stable and incentivized leadership team.

Next Steps

• Vesting of 7,632 Restricted Stock Units on the earlier of June 15, 2026, or the date of the Issuer's next Annual Meeting, subject to continued service.
• Vesting of 9,206 Stock Options on the earlier of the first anniversary following the grant date or the date of the Issuer's next Annual Meeting, subject to continued service.

Key Dates

Keywords

Scholar Rock Holding Corp, SRRK, Form 4, Insider Transaction, Restricted Stock Units, RSU, Stock Options, Equity Compensation, Director Compensation, Beneficial Ownership