Form 4: Serve Robotics Director Lily Sarafan Granted 20,000 Restricted Stock Units

Serve Robotics Inc. Director and 10% owner Lily Sarafan was granted 20,000 restricted stock units (RSUs) on June 23, 2025, which will vest upon the earlier of the next annual shareholder meeting or June 12, 2026.

Summary

• Lily Sarafan, a Director and 10% owner of Serve Robotics Inc. (SERV), acquired 20,000 shares of common stock on June 23, 2025.
• These shares represent a restricted stock unit (RSU) award, granted at a price of $0 per share.
• Following this transaction, Ms. Sarafan beneficially owns a total of 58,402 shares of common stock directly.
• The RSU award is set to vest in full on the earlier of the Issuer's next annual shareholder meeting or June 12, 2026.
• A Power of Attorney, effective June 12, 2025, was granted by Lily Sarafan to Ali Kashani, Touraj Parang, Evan Dunn, and Jongmin Char to manage her EDGAR account and file Section 16 forms (Forms 3, 4, and 5) on her behalf.

Sentiment

Score: 6

Explanation: The filing reports a standard equity grant to a director, which is a neutral to slightly positive event as it aligns director interests with shareholders. There are no negative implications or significant surprises.

Positives

• The grant of 20,000 Restricted Stock Units (RSUs) to Director Lily Sarafan aligns her interests with long-term shareholder value, as the value of the award is tied to the company's stock performance.
• The RSU award is a form of equity compensation, which is a common practice to incentivize and retain key personnel.

Risks

• The value of the RSU award is subject to the future performance of Serve Robotics Inc.'s common stock, meaning the actual value realized upon vesting could be lower than the current market value if the stock price declines.
• The vesting of the RSUs is contingent on future events (next annual shareholder meeting or June 12, 2026), and there is no guarantee of continued employment or directorship until vesting.

Future Outlook

The 20,000 Restricted Stock Units granted to Lily Sarafan are scheduled to vest in full on the earlier of Serve Robotics Inc.'s next annual shareholder meeting or June 12, 2026, indicating a future milestone for the equity compensation.

Industry Context

The grant of Restricted Stock Units (RSUs) to a director is a common practice across various industries, particularly in technology and growth-oriented companies, as a means of non-cash compensation that aligns executive and director incentives with shareholder interests. This type of compensation is standard for publicly traded companies seeking to retain and motivate key personnel.

Comparison to Industry Standards

• The grant of RSUs to a director is a standard form of equity compensation, comparable to practices at other publicly traded technology or robotics companies. Specific comparable companies or projects are not detailed in this filing, as it focuses on an individual transaction.
• The $0 acquisition price is typical for RSU grants, reflecting that these are awards rather than purchases.

Corporate Governance

Related Party Transactions

• The grant of 20,000 Restricted Stock Units (RSUs) to Lily Sarafan, a Director and 10% owner of Serve Robotics Inc., constitutes a related party transaction as it involves compensation provided by the company to an insider.

Stakeholder Impact

• Shareholders: The RSU grant aligns the interests of a significant director and 10% owner with long-term shareholder value, potentially fostering better governance and strategic decisions aimed at increasing stock price.
• Employees: While not directly impacting all employees, the use of equity compensation for directors sets a precedent for how the company values and incentivizes its leadership.

Next Steps

• The 20,000 Restricted Stock Units (RSUs) granted to Lily Sarafan are expected to vest in full on the earlier of the Issuer's next annual shareholder meeting or June 12, 2026.

Key Dates

Recommendation

Keywords

Serve Robotics Inc., SERV, Lily Sarafan, Form 4, SEC filing, Restricted Stock Units, RSU, insider transaction, equity compensation, director compensation, stock award, beneficial ownership, corporate governance, Power of Attorney