Form 4: Schrodinger EVP, CTO & COO, Software, Kenneth Patrick Lorton, Reports Acquisition of Stock Options and Restricted Stock Units

Kenneth Patrick Lorton, EVP, CTO & COO, Software at Schrodinger, Inc., reports the acquisition of 50,000 stock options and 12,500 restricted stock units (RSUs) on March 3, 2025.

Summary

• On March 3, 2025, Kenneth Patrick Lorton, EVP, CTO & COO, Software at Schrodinger, Inc., was granted 50,000 stock options with an exercise price of $21.24.
• These options vest 25% on March 3, 2026, and the remainder in equal monthly installments through March 3, 2029.
• Lorton also received 12,500 restricted stock units (RSUs) under the Issuer's 2022 Equity Incentive Plan, as amended.
• These RSUs vest in equal installments on March 4 of 2026, 2027, 2028, and 2029, contingent upon continued service with the company.
• Following these transactions, Lorton beneficially owns 53,576 shares of common stock, including 16,585 unvested RSUs, and 50,000 stock options.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The granting of stock options and RSUs is a standard practice and generally viewed favorably as it aligns management's interests with shareholders. There are no explicit negative indicators.

Positives

• The grant of stock options and RSUs aligns Lorton's interests with those of the shareholders, incentivizing him to contribute to the company's long-term success.
• The vesting schedules for both the stock options and RSUs encourage continued service with the company.

Future Outlook

The document does not contain specific forward-looking statements beyond the vesting schedules of the stock options and RSUs.

Industry Context

Granting stock options and RSUs to key executives is a common practice in the technology and pharmaceutical industries to incentivize performance and retain talent. Schrodinger, as a company operating at the intersection of these sectors, follows this trend.

Comparison to Industry Standards

• Stock option grants are a standard component of compensation packages for executives in publicly traded companies, particularly in the tech and biotech sectors.
• Companies like Google, Amazon, and Moderna also use stock options and RSUs to align executive compensation with shareholder value.
• The vesting schedules described are typical, with vesting occurring over a period of several years to encourage long-term commitment.

Stakeholder Impact

• Shareholders may view the grant of stock options and RSUs positively, as it incentivizes management to increase shareholder value.
• Employees may see this as a positive sign, indicating the company's commitment to retaining key personnel.

Key Dates