The options have an exercise price of $2.99 per share, which is equal to the closing price of BioCryst common stock on the last business day prior to the grant date
. The options vest in four equal annual installments beginning on the one-year anniversary of the grant date
, in each case subject to the new employee's continued service with the company.
As part of her appointment as CEO, Donigan will be granted an "employment inducement award" that consists of restricted stock awards with a grant date
fair value equal to $2 million that are payable over a three-year period.
On the grant date
of 1 July 2019, the employees received options to purchase an aggregate 13,870 shares of common stock from the company.
The RSUs vest over four years with 25 percent of the RSUs vesting on the first anniversary of the grant date
and the balance vesting quarterly thereafter in 12 equal installments, subject to continued service through each applicable vesting date.
The company added that the options have an exercise price of USD8.19 per share, which is equal to the closing price of its common stock on the grant date
These warrants vest three years after the grant date
and all warrants expire at the seventh anniversary of the grant date
Anderson is entitled to receive grants of long-term incentive awards consisting of (i) a grant of performance-based RSUs (" PRSUs ") under the company's Long-Term Performance Plan, which will vest at the end of a three-year performance period commencing January 1, 2019 depending upon the achievement of certain performance goals and (ii) a grant of restricted stock units (" RSUs "), which will vest in four equal annual installments following the grant date
, subject, in each case, to Mr.
The options are scheduled to vest one third on the first anniversary of the grant date
, the second one third on the second anniversary of the grant date
, and the final one third on the third anniversary of the grant date
, subject to continued employment through each vesting date.
Making the Section 83(b) election allows you to report as ordinary income in the year the stock is granted the fair market value of stock as of the grant date
. The election, which you must make within 30 days after receiving the stock, can be very beneficial if the fair market value of the stock at the grant date
is negligible or the stock is likely to appreciate significantly before income would otherwise be recognized.
Under section 409A, for an option to be an ISO, its exercise price must at least equal the stock price on the option grant date
. For private companies, it must at least equal the fair market value, determined through the reasonable application of a reasonable valuation method within the facts and circumstances as of the valuation date (Treas.
The compensation expense associated with option grants is based on the estimated fair value of the options as of the grant date
. To estimate this value, most companies use the Black-Scholes option pricing model.