Biotech IPO Stock Plan Evergreens

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Although not really news, we did pull the stock plan evergreens for most of the recent  “standard” IPOs.  By standard, we mean domestic companies listing on US exchanges that have really not been subject to public reporting rules previously.  Virtually every such company has a new public company stock option/restricted stock plan with an evergreen feature–that is, the stock plan’s pool increases annually by some percentage of the company’s outstanding shares.  By the far the most common percentage is 4%, though about 20% have a 5% evergreen. We would guess most companies opt for the 4% for reason of optics–the 4% perhaps looks a little more frugal, but in fact, most companies don’t use the full percentage component evergreen every year (there is usually a set number limit and a board discretion limit that “brake” the evergreen before it gets to the full percent).  The companies are identified below:

IPO Evergreens

 

(photo courtesy UTSanDiego)

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