Form 4: Veeva Systems CEO Peter Gassner Granted Stock Option Award

Veeva Systems CEO Peter Gassner was granted a stock option to purchase 2,650,000 shares of Class A Common Stock, contingent on performance and stock price targets.

Summary

• Peter Gassner, CEO of Veeva Systems, was granted a stock option on June 19, 2024, to purchase 2,650,000 shares of Veeva's Class A Common Stock.
• The exercise price of the option is $236.90 per share.
• The option vests over five years, starting February 1, 2026, with one-fifth of the shares vesting each year thereafter.
• Vesting is contingent on Gassner's continued service as CEO and the closing price of Veeva's Class A Common Stock being at or above $236.90 for 60 consecutive trading days between February 1, 2025, and February 1, 2030.
• The option expires on June 18, 2034.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, indicating confidence in the CEO's leadership and the company's future performance. The vesting conditions suggest a focus on long-term value creation.

Positives

• The stock option grant aligns the CEO's interests with those of the shareholders by incentivizing him to increase the company's stock price.
• The vesting schedule encourages long-term commitment from the CEO.

Risks

• The stock price target may not be met, preventing the option from fully vesting.
• The CEO may leave the company before the options fully vest, resulting in forfeiture of unvested options.

Future Outlook

The vesting of the stock option is contingent on the CEO's continued service and the company's stock price performance, suggesting a focus on long-term growth and stability.

Industry Context

Stock options are a common form of executive compensation in the technology industry, used to align management's interests with those of shareholders and incentivize long-term value creation.

Comparison to Industry Standards

• Stock option grants are a typical component of executive compensation packages in the software industry, often tied to performance metrics and stock price appreciation.
• Companies like Salesforce, Workday, and ServiceNow also utilize stock options as part of their executive compensation strategy.
• The vesting schedule and performance criteria are generally in line with industry standards for similar roles and company sizes.

Stakeholder Impact

• Shareholders may view the stock option grant positively, as it aligns the CEO's interests with their own.
• Employees may be motivated by the potential for company growth and stock price appreciation.
• The grant has no immediate impact on customers, suppliers, or creditors.

Key Dates