Form 4: Zevra Therapeutics Director Alvin Shih Receives 30,000 Stock Options as Compensation

Zevra Therapeutics, Inc. Director Alvin Shih was granted 30,000 stock options with an exercise price of $8.62 as part of his compensation for board service.

Summary

• Alvin Shih, a Director of ZEVRA THERAPEUTICS, INC. (ZVRA), was granted 30,000 stock options on May 29, 2025.
• The exercise price for these options is $8.62 per share, which was the closing price of ZVRA common stock on the Nasdaq Global Select Market on the grant date.
• These options were awarded as compensation for Mr. Shih's service on the Issuer's board of directors, in accordance with the company's tenth amended and restated non-employee director compensation policy.
• The options will vest 100% on the earliest of: (i) the first anniversary of the grant date, (ii) the day prior to the first annual stockholders meeting after the grant date, or (iii) immediately prior to a change in control of the Issuer, all subject to Mr. Shih's continued service.
• Following this transaction, Mr. Shih directly beneficially owns 30,000 derivative securities (stock options).

Sentiment

Score: 6

Explanation: The grant of stock options to a director is a standard compensation practice that aligns the director's interests with shareholder value creation. It is a routine disclosure and does not indicate any significant positive or negative operational news.

Positives

• The grant of stock options to Director Alvin Shih aligns his interests with those of shareholders, as the value of his compensation is tied to the company's stock performance.
• This compensation is part of a pre-existing, publicly disclosed non-employee director compensation policy, indicating structured corporate governance.

Negatives

• The issuance of new stock options, upon exercise, could lead to a minor dilutive effect on existing shareholders, though this is standard for equity compensation.

Future Outlook

This document does not provide a general future outlook for the company's operations or financial performance. It only details the vesting schedule for the granted options, which extends into the future.

Management Comments

• "This grant was awarded as compensation for the Reporting Person's service on the Issuer's board of directors pursuant to the Issuer's tenth amended and restated non-employee director compensation policy."

Industry Context

This Form 4 filing is a routine disclosure of insider compensation, common across all industries, particularly in publicly traded companies where equity compensation is a standard practice to align management and director interests with shareholders. It does not provide specific industry trends or competitive insights.

Comparison to Industry Standards

• The practice of granting stock options to non-employee directors is a common compensation method in the biotechnology and pharmaceutical industries, similar to companies like Biogen Inc. or Gilead Sciences, Inc., aiming to incentivize long-term value creation and align director interests with shareholder returns.
• The vesting schedule, tied to continued service and potential change of control, is also a standard feature in such compensation plans across various sectors, including technology and healthcare, ensuring retention and incentivizing strategic transactions.

Corporate Governance

Stakeholder Impact

• Shareholders: Potential for minor dilution upon exercise of options; improved alignment of director interests with shareholder value.

Next Steps

• The stock options granted to Alvin Shih will vest on the earliest of the first anniversary of the grant date, the day prior to the first annual stockholders meeting after the grant date, or immediately prior to a change in control of the Issuer, subject to continued service.

Key Dates

Keywords

ZEVRA THERAPEUTICS, ZVRA, Alvin Shih, Stock Option, Director Compensation, SEC Form 4, Insider Transaction, Equity Compensation, Corporate Governance