Form 4: Zivo Bioscience CFO Keith Marchiando Reports Option Grant and Cancellation

Keith Marchiando, CFO of Zivo Bioscience, reports the cancellation of existing stock options and the grant of a new replacement option.

Summary

• On June 5, 2024, Keith Marchiando, the Chief Financial Officer of Zivo Bioscience, filed a Form 4.
• The filing details the cancellation of several nonstatutory stock options to purchase common stock and the grant of a new nonstatutory stock option.
• Specifically, options for 27,083 shares (exercise price $67.2), 48,000 shares (exercise price $33), and 10,333 shares (exercise price $23.64) were canceled.
• In exchange, Marchiando received a replacement option for 444,498 shares with an exercise price of $7.96.
• The new option vests in installments, with 328,065 shares vesting immediately and the remainder vesting on various dates through August 28, 2025.
• The canceled options were initially granted on January 1, 2021, October 21, 2021, and August 29, 2022, and vested over time.

Sentiment

Score: 6

Explanation: The document is neutral in tone, simply reporting a transaction. The option grant is generally a positive sign, but the cancellation of previous options tempers the overall sentiment.

Positives

• The new option grant could incentivize the CFO to improve company performance, aligning his interests with shareholders.
• The vesting schedule of the new option encourages continued service and commitment from the CFO.

Industry Context

Option grants are a common practice in the biotechnology industry to incentivize executives and align their interests with those of shareholders. The specific terms of the grant, such as the vesting schedule and exercise price, are tailored to the individual and the company's circumstances.

Comparison to Industry Standards

• Stock option grants are a common component of executive compensation packages in the biotech industry.
• Companies like Amgen, Gilead, and Biogen also utilize stock options to incentivize their executives.
• The size of the grant and the vesting schedule are typically benchmarked against peer companies to ensure competitiveness.
• The exercise price is usually set at or above the current market price of the stock at the time of the grant.

Stakeholder Impact

• Shareholders may view the option grant as a positive incentive for the CFO.
• Employees may see this as a standard part of executive compensation.

Key Dates

Keywords

Form 4, Zivo Bioscience, Stock Options, Keith Marchiando, CFO, Equity Incentive Plan, Vesting