PLYMOUTH MEETING, PA — INOVIO (NASDAQ: INO) recently announced it has made an equity grant to a newly hired employee. The grant is part of INOVIO’s 2022 Inducement Plan, a strategy designed to attract and retain top-tier talent.
The Compensation Committee of INOVIO’s Board of Directors approved the award of restricted stock units (RSUs), covering a total of 3,750 shares of common stock. Additionally, the new hire was granted an option to purchase an aggregate of 5,833 shares of common stock. Both grants were effective as of January 31, 2024.
Inducement grants are a common tool used by companies to incentivize employees. They offer a form of equity compensation that aligns the interests of the employee with those of the company’s shareholders. By tying an employee’s compensation to the company’s performance, inducement grants can motivate employees to contribute to the company’s success.
In this case, the RSUs will vest over a three-year period, with one-third of the shares vesting on each of the first, second and third anniversaries of the grant date. This staggered vesting schedule is designed to encourage the employee to remain with the company for a significant period.
The stock option comes with an exercise price of $5.39, which was the closing price of INOVIO’s common stock on the grant date. The stock option will vest and become exercisable with respect to one-fourth of the shares underlying the stock option vested on the grant date, and an additional one-fourth of the shares underlying the stock option on the first, second, and third anniversaries of the grant date.
The vesting of both the RSUs and the stock option is contingent upon the employee’s continued employment with INOVIO on the applicable vesting dates. The terms and conditions of these awards are subject to a stock option agreement and RSU award agreement under the Inducement Plan.
The move by INOVIO reflects the importance of equity grants in not only attracting top talent but also in retaining them. In an industry where innovation is key, securing and maintaining a strong team can be a critical factor in a company’s success. The use of inducement grants is one way companies like INOVIO are working to ensure they have the best team in place.
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