Form 4: Schrodinger CEO Ramy Farid Receives Stock Options and Restricted Stock Units

Ramy Farid, CEO of Schrodinger, Inc., was granted stock options and restricted stock units (RSUs) on March 3, 2025, according to a Form 4 filing with the SEC.

Summary

• On March 3, 2025, Ramy Farid, the President and CEO of Schrodinger, Inc., received 37,500 restricted stock units (RSUs) and options to purchase 150,000 shares of common stock.
• The RSUs were granted under the company's 2022 Equity Incentive Plan and will vest in equal installments annually from March 4, 2026, to March 4, 2029, contingent upon continued service.
• Farid received an option to buy 60,000 shares at an exercise price of $21.24, vesting 25% on March 3, 2026, and the remainder in equal monthly installments through March 3, 2029.
• He also received an option to buy 90,000 shares at an exercise price equal to 110% of the closing price on the grant date, also vesting 25% on March 3, 2026, and the remainder in equal monthly installments through March 3, 2029.
• Following these transactions, Farid directly owns 221,932 shares of Schrodinger, Inc., including 37,500 unvested RSUs, and holds options to purchase 150,000 shares.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, indicating stability and alignment of interests. The sentiment is neutral to positive.

Positives

• The grant of RSUs and stock options aligns the CEO's interests with those of the shareholders, incentivizing long-term value creation.
• The vesting schedules encourage continued service and commitment from the CEO.

Future Outlook

The vesting schedules for the RSUs and stock options extend through 2029 and 2035, respectively, indicating a long-term commitment from the CEO.

Industry Context

Equity grants are a common practice in the technology and pharmaceutical industries to attract, retain, and incentivize top executive talent. Schrodinger, being a company operating at the intersection of these sectors, aligns with this trend.

Comparison to Industry Standards

• Companies like Relay Therapeutics and Recursion Pharmaceuticals also utilize stock options and RSUs as part of their executive compensation packages.
• The vesting schedules and grant sizes are generally comparable to those offered by peer companies of similar market capitalization and growth stage.

Stakeholder Impact

• Shareholders may view the equity grants positively as they align management's interests with long-term value creation.
• Employees may see this as a sign of the company's commitment to its leadership.

Key Dates