Form 4: Simulations Plus CRO Granted Stock Options

Simulations Plus's Chief Revenue Officer, John Anthony DiBella, was granted 27,500 stock options with an exercise price of $16.02.

Summary

• John Anthony DiBella, Chief Revenue Officer of Simulations Plus, Inc. (SLP), was granted 27,500 stock options.
• The stock options have an exercise price of $16.02 per share.
• The grant date for these options was October 16, 2025.
• The options will vest in four equal annual installments, with one-fourth vesting on each anniversary of the grant date.
• The expiration date for these stock options is October 15, 2035.
• Following this transaction, Mr. DiBella beneficially owns 27,500 derivative securities (stock options) directly.

Sentiment

Score: 7

Explanation: The grant of stock options to a key executive is generally a positive signal, as it aligns management's interests with long-term shareholder value. It is a routine compensation event and does not indicate any immediate operational or financial changes, hence a moderately positive score.

Positives

• The grant of stock options aligns the Chief Revenue Officer's long-term financial interests with those of the shareholders, incentivizing performance and growth.
• Equity compensation is a standard practice for retaining and motivating key executives in the industry.

Future Outlook

The stock options are structured to vest over a four-year period, indicating a long-term incentive for the Chief Revenue Officer to contribute to the company's future performance.

Industry Context

The grant of stock options to a Chief Revenue Officer is a common form of executive compensation in the software and technology sectors, particularly for companies like Simulations Plus that operate in specialized fields such as pharmaceutical and biotechnology simulation and modeling. This practice aims to align executive incentives with long-term shareholder value creation.

Comparison to Industry Standards

• Executive equity grants, such as stock options, are a standard component of compensation packages across the technology and life sciences software industries, comparable to practices at companies like Dassault Systèmes (BIOVIA), Certara, or Schrödinger, Inc. The specific size and exercise price are typically determined by company-specific compensation policies, performance metrics, and market benchmarks for similar roles and company sizes.
• The four-year vesting schedule is a common industry practice designed to promote executive retention and long-term commitment, aligning with typical vesting periods seen at many publicly traded technology and healthcare companies.

Corporate Governance

Stakeholder Impact

• Shareholders: The grant of stock options aims to align the Chief Revenue Officer's performance with shareholder value, potentially leading to improved long-term company performance.
• Employees: This transaction is specific to an executive and does not directly impact the broader employee base, though it reflects the company's executive compensation strategy.

Next Steps

• The stock options will begin vesting in four equal annual installments, starting one year from the grant date of October 16, 2025.

Key Dates

Keywords

Simulations Plus, SLP, Stock Options, Executive Compensation, John Anthony DiBella, Chief Revenue Officer, Equity Grant, Insider Transaction