Incyte Reports Inducement Grant Under Nasdaq Listing Rule 5635(c)(4)
Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Very Positive)
Tags
Key Terms
nasdaq listing rule 5635(c)(4)regulatory
NASDAQ Listing Rule 5635(c)(4) is a rule that requires a company to get approval from its shareholders before selling a large amount of its shares, usually over 20%. This helps protect investors by making sure the company doesn't flood the market with new shares without their say, which could lower the stock's value.
stock optionsfinancial
Stock options are agreements that give a person the right to buy or sell a company's stock at a specific price within a certain time frame. They are often used as a reward or incentive, similar to a coupon that can be used later if the stock price rises, allowing the holder to make a profit.
restricted stock unitsfinancial
Restricted stock units are a type of company reward where employees are promised shares of stock, but they only fully own these shares after meeting certain conditions, like staying with the company for a set time. They matter because they can become valuable assets and are often used to motivate employees to help the company succeed.
performance sharesfinancial
Performance shares are a type of company stock given to executives or employees that only become theirs if the company meets specific goals, like hitting certain profits or growth targets. They motivate leaders to work toward the company’s success, because their additional shares depend on achieving these results.
vesting commencement datefinancial
The vesting commencement date is the starting point when an employee begins earning ownership rights to their promised benefits, such as stock options or retirement contributions. Think of it like the day a savings account is opened—only after this date do the benefits start to grow and become fully available over time. It matters to investors because it marks when the clock begins ticking toward full ownership, affecting the timing and value of these benefits.
exercise pricefinancial
The exercise price is the fixed amount at which you can buy or sell an asset, like a stock, when using an options contract. It matters because it helps determine whether exercising the option will be profitable or not, depending on the current market price. Think of it as the set price you agree on today to buy or sell later.
total shareholder return (tsr)financial
Total shareholder return (TSR) measures how much an investment in a company's stock has grown over a specific period by combining the change in the share price and all dividends paid, expressed as a percentage. Think of it like tracking the total balance of a savings jar that increases both from added cash (dividends) and a rising sticker price on the jar (share price); investors use TSR to compare how well different stocks or managers deliver real, money-in-hand returns.
WILMINGTON, Del.--(BUSINESS WIRE)--
Incyte Corporation (Nasdaq: INCY) announced today equity inducement awards grants to Richard Hoffman, Company’s new Executive Vice President and General Counsel, pursuant to the Company’s 2024 Inducement Stock Incentive Plan. The awards were approved by the compensation committee of the Company’s Board of Directors as an inducement material to the new employee entering into employment with the Company in accordance with Nasdaq Listing Rule 5635(c)(4).
As an inducement material to his employment, Mr. Hoffman received, with a grant and vesting commencement date of December 1, 2025, an award of stock options to purchase 43,301 shares of the Company’s common stock, an award of restricted stock units (RSUs) to acquire 9,466 shares of the Company’s common stock and an award of performance shares with a target number of shares of 23,665. The stock options have an exercise price of $102.04 per share, which is equal to the closing price of the Company’s common stock on the grant date. The stock options have a ten-year term and vest as to 25% of the shares subject to the stock options on the one-year anniversary of the grant date with the remainder vesting in 36 successive equal monthly installments, subject to Mr. Hoffman’s continued service with the Company on each such date. The RSUs will vest as to 25% of the shares subject to the RSUs on each of the first four anniversaries of the vesting commencement date, subject to Mr. Hoffman’s continued service with the Company on each such date. The performance shares can be earned at 0-200% of target based on the Company’s relative total shareholder return (TSR) performance over a three-year performance period beginning January 1, 2025 as compared to the TSR of companies in the same fixed peer group that was used for the Company’s July 2025 annual performance share awards to its other executive officers and, if earned, will vest on the third anniversary of the grant date, subject to Mr. Hoffman’s continued service.
About Incyte
A global biopharmaceutical company on a mission to Solve On., Incyte follows the science to find solutions for patients with unmet medical needs. Through the discovery, development, and commercialization of proprietary therapeutics, Incyte has established a portfolio of first-in-class medicines for patients and a strong pipeline of products in Oncology and Inflammation & Autoimmunity. Headquartered in Wilmington, Delaware, Incyte has operations in North America, Europe and Asia.
