WIB-Greater Boston: Equity Compensation in Life Science – Expert Panel Discussion and Q&A, February

On Tuesday, February 28, 2023, WIB-Greater Boston hosted a panel on all things equity! Moderated by Kelly McGlynn of MOMA Therapeutics, the experienced panel provided input and insight into equity know-how. The panel included Jackie Tatarzycki of Casma Therapeutics, Lauren McMurry of AON, and Nazareth Martinez of MOMA Therapeutics. During the conversation and Q&A, the various types of equity that exist were explained for the more than 70 attendees to gain a deeper understanding of equity terms, conditions, and affecting factors.

Input was provided on a multitude of equity topics, including:

• Public and private company handling of equity (annual grants and new hire grants)
• How equity is awarded and valued (as an amount or percentage of pool)
• Use of different equity instruments (options, RSUs, RSAs, non-quals, etc.)
• Competitive equity positioning and valuation (competitive market assessments, 409(a)s, dilution)
• Impact of Equity Pay Act on equity
• IPO impact on equity (evaluation of multiple factors including but not limited to company performance, stage, valuation, supporting organization for financial event, dilution, blackouts, and diversification)
• Impact on equity in merger or acquisition (preferred shares, common shares, new grants, and vesting schedules)
• In the event of a layoff, what happens with equity (time to exercise, accelerated vesting)
• And importantly, current trends in equity offerings due to economic climate and market volatility (retention rewards, new hire grants, shift from options and increase in RSUs, tackling risk profile and finding equity stability, more frequent equity review cycles)

Many thanks to our fantastic panel and moderator for this great (and timely!) opportunity to learn more about equity as a valuable compensation element and get insight on the impact of the current macroeconomic environment and our life science market on all things equity!