Form 4: Xeris Biopharma Executive Kevin McCulloch Reports Stock Transactions

Xeris Biopharma's President and COO, Kevin McCulloch, reports the acquisition and disposal of company stock and stock appreciation rights.

Summary

• Kevin McCulloch, President and Chief Operating Officer of Xeris Biopharma Holdings, Inc., reported several transactions involving the company's stock on January 31, 2025.
• These transactions include the withholding of 29,300 and 48,834 shares to cover tax obligations related to vested restricted stock units, both at a price of $3.56 per share.
• McCulloch also acquired 185,000 shares through a restricted stock unit grant, which will vest over three years.
• Additionally, he was granted 500,000 stock appreciation rights, which will vest on March 2, 2027, and will be settled in cash upon exercise.
• McCulloch also has indirect ownership of 25,000 shares held by his spouse and 2,000 shares held by the Charles R. McCulloch Trust dated 1990.

Sentiment

Score: 7

Explanation: The document reflects standard executive compensation practices and insider transactions, which are generally neutral to positive for the company's outlook. The stock grants and appreciation rights are positive incentives for the executive.

Positives

• The grant of 185,000 restricted stock units to McCulloch aligns his interests with the long-term performance of the company.
• The grant of 500,000 stock appreciation rights provides an incentive for future growth and value creation.

Negatives

• The withholding of 78,134 shares to cover tax obligations indicates a reduction in McCulloch's direct shareholding.

Risks

• The vesting of the restricted stock units and stock appreciation rights is contingent on continued service with the company, which could be a risk if McCulloch were to leave.
• The value of the stock appreciation rights is dependent on the future performance of the company's stock price.

Future Outlook

The restricted stock units will vest in equal annual installments over three years, and the stock appreciation rights will vest on March 2, 2027, subject to continued service.

Management Comments

• The report was signed by Beth Hecht, Attorney-in-Fact for Kevin McCulloch.

Industry Context

This type of filing is standard for corporate insiders and is required by the SEC to ensure transparency in stock transactions by company executives.

Comparison to Industry Standards

• Stock-based compensation, including restricted stock units and stock appreciation rights, is a common practice among publicly traded companies to incentivize executives.
• The vesting schedules and terms of these grants are generally in line with industry standards for executive compensation packages.
• Companies like Amgen, Regeneron, and Biogen also use similar stock-based compensation methods for their executives.

Stakeholder Impact

• Shareholders may view the stock grants as a positive incentive for management.
• The transactions have a minor impact on the total number of shares outstanding.

Next Steps

• The restricted stock units will continue to vest over the next three years.
• The stock appreciation rights will vest on March 2, 2027, if McCulloch remains with the company.

Key Dates

Keywords

Xeris Biopharma, stock transactions, restricted stock units, stock appreciation rights, insider trading, executive compensation, Form 4, Kevin McCulloch