Form 4: Supernus Pharmaceuticals CEO Settles Performance Share Units

Jack A. Khattar, CEO of Supernus Pharmaceuticals, settled performance share units, resulting in the acquisition and subsequent withholding of common stock for tax purposes.

Summary

• On February 28, 2024, Jack A. Khattar, the President and CEO of Supernus Pharmaceuticals, settled 35,000 Performance Share Units.
• This resulted in the acquisition of 35,000 shares of common stock.
• The company withheld 16,788 shares to satisfy tax withholding requirements at a price of $27.94 per share.
• Following these transactions, Khattar directly owns 915,217 shares of common stock and indirectly owns 1,022,450 shares through the KBT Trust.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive as it reflects the achievement of performance goals and standard executive compensation practices.

Positives

• The vesting of performance share units indicates that performance objectives were met.

Industry Context

This filing is a routine disclosure related to executive compensation and stock ownership, common in the pharmaceutical industry.

Comparison to Industry Standards

• Performance-based equity compensation is a standard practice among publicly traded pharmaceutical companies.
• Companies like Teva Pharmaceuticals, Mylan (now Viatris), and Amgen also utilize performance share units as part of their executive compensation packages.
• The vesting criteria and the proportion of equity-based compensation can vary significantly based on company size, performance, and industry benchmarks.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders as it aligns executive compensation with company performance.

Key Dates