Form 4: Xencor CFO Bart Jan Cornelissen Reports Acquisition of Restricted Stock Units and Stock Options

Bart Jan Cornelissen, CFO of Xencor Inc, reports the acquisition of restricted stock units and stock options.

Summary

• On April 9, 2024, Bart Jan Cornelissen, the Senior Vice President & CFO of Xencor Inc., reported the acquisition of 42,265 shares of common stock and 190,194 stock options.
• The common stock was acquired at a price of $0.
• The stock options have an exercise price of $21.55 and expire on April 8, 2034.
• The restricted stock units vest in three equal installments on the first, second, and third anniversaries of the grant date.
• The stock options vest 25% on the one-year anniversary of April 9, 2024, and then 1/48th monthly thereafter, fully vesting on the four-year anniversary.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The filing reflects standard executive compensation practices, aligning management interests with shareholders through equity ownership. There are no immediate negative implications.

Positives

• The acquisition of stock and options aligns the CFO's interests with those of the shareholders.
• The vesting schedules for both the restricted stock units and stock options incentivize long-term performance.

Industry Context

Form 4 filings are standard practice for reporting changes in beneficial ownership by company insiders, providing transparency to investors.

Comparison to Industry Standards

• Stock option grants and restricted stock units are common forms of executive compensation in the biotechnology industry, used to attract and retain talent.
• Vesting schedules are typically structured to incentivize long-term commitment and performance, aligning executive interests with shareholder value, similar to compensation packages at companies like Amgen and Regeneron.

Stakeholder Impact

• The filing provides transparency to shareholders regarding executive compensation.
• The vesting schedules incentivize the CFO to contribute to the long-term success of the company, benefiting shareholders.

Key Dates