Company: CRNX
Filing Date: 2025-04-23
Form Type: DEF 14A
Source: 0000950170-25-057452
Chunk: 54

Company: Crinetics Pharmaceuticals, Inc.
Filing Date: 2025-04-23
Form: DEF 14A
Chunk 54
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 executives with those of our stockholders. • RSUs are an effective retention tool that maintain value even in cases where the share price is trading lower than the initial grant price. RSUs are also less dilutive to our stockholders, as fewer shares of our common stock are granted to achieve an equivalent value relative to stock options.

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The exercise price of each stock option grant is the fair market value of our common stock on the grant date. Stock option awards granted in connection with an employee’s commencement of employment generally vest over a four-year period as follows: 25% of the option vests on the first anniversary of the date of the vesting commencement date and the remainder of the option vests in equal monthly installments over the remaining 36 months thereafter. Annual stock option awards to our named executive officers vest monthly over a four-year period. RSU awards generally vest in four equal annual installments. From time to time, our compensation committee may, however, determine that a different vesting schedule is appropriate. 2024 Annual Equity Awards Generally, the compensation committee determines the value of each executive officer’s annual equity grant using a holistic evaluation that takes into account a competitive market analysis prepared by our independent compensation consultant with market data for each role, the recommendations of our Chief Executive Officer based on his evaluation of their individual performance (except with respect to the Chief Executive Officer’s performance), the extent to which the executive officer is currently vested in his or her stock awards, scope and criticality of the executive’s role and parity in targets among executives in roles of a given level. Based upon these factors, the compensation committee determines the size of the long-term equity incentives at levels it considers appropriate to create a meaningful opportunity for reward predicated on the creation of long-term stockholder value. In March 2024, the compensation committee approved the annual equity awards for Dr. Struthers, Mr. Wilson, Dr. Pizzuti, Dr. Betz, and Mr. Knight in a combination of options and RSU awards with approximately 70% of the value allocated in the form of options and approximately 30% of the value allocated in the form of RSU awards. The awards vest in accordance with the standard vesting schedule described above. The stock options have an exercise price equal to $43.51, which was the closing price of our common stock on the date of grant (March 4, 2024), and a term of ten years from the date of grant. The equity awards granted