Form 4: Schrodinger Director Gary Ginsberg Reports Stock and Option Grants

Director Gary Ginsberg reported the acquisition of restricted stock units and stock options in Schrodinger, Inc.

Summary

• On June 18, 2024, Gary Ginsberg, a director of Schrodinger, Inc. (SDGR), reported the acquisition of 5,000 restricted stock units (RSUs) and stock options for 8,550 shares.
• The RSUs were granted under the Issuer's 2022 Equity Incentive Plan and represent a contingent right to receive one share of common stock each.
• The RSUs vest on the twelve-month anniversary of the grant date or the date of the next annual meeting of stockholders, subject to continued service.
• Ginsberg also acquired stock options with an exercise price of $19.32, which also vest on the twelve-month anniversary of the grant date or the date of the next annual meeting of stockholders, subject to continued service.
• Following the reported transactions, Ginsberg beneficially owns 11,250 shares of common stock, including 5,000 unvested RSUs, and options for 8,550 shares.

Sentiment

Score: 7

Explanation: The document reflects a standard equity grant, which is generally viewed positively as it aligns management interests with shareholders. There are no indications of negative news or concerns.

Positives

• The grant of RSUs and stock options to a director aligns their interests with those of the shareholders.
• The vesting schedule encourages continued service and commitment to the company.

Future Outlook

The vesting of the RSUs and stock options is contingent upon continued service, suggesting an expectation of ongoing involvement by the director.

Industry Context

Grants of stock options and restricted stock units are common practices in the biotech and software industries to incentivize and retain key personnel.

Comparison to Industry Standards

• Stock option and RSU grants are standard compensation practices in the technology and pharmaceutical industries.
• Companies like Relay Therapeutics, Recursion Pharmaceuticals, and Exscientia also utilize equity-based compensation to align executive incentives with shareholder value.
• The vesting schedules, typically one to four years, are also in line with industry norms.

Stakeholder Impact

• Shareholders may view the equity grants positively as they incentivize the director to work towards increasing shareholder value.
• Employees may see the grants as a sign of the company's commitment to its leadership.

Key Dates