Alector reprices employee stock options after board review

Alector, Inc. disclosed in an SEC filing that its Board of Directors approved an option repricing effective October 13, 2026.¹

The repricing covered options granted under the company's 2019 Equity Incentive Plan or its 2017 Stock Option and Grant Plan. Eligible options were those held by current employees, still held by continuing employees as of the effective date, and carrying an exercise price above $1.87 per share.¹

Among those affected were top executives. Arnon Rosenthal, the company's co-founder and chief executive officer, had eligible options to purchase an aggregate of 2,421,197 shares with original exercise prices ranging from $6.48 to $23.70 per share repriced, and Grace Wong-Sarad, the company's chief accounting officer, had options covering 87,385 shares with original prices between $9.46 and $23.70 repriced.¹

The new exercise price for repriced options was set at $1.87 per share, matching the stock's closing price on the effective date.¹ However, the filing notes a retention mechanism: employees who exercise a repriced option before the end of a defined retention period must instead pay the original, higher exercise price.¹ That retention period runs from the effective date until the earliest of one year later, a change in control, or the option holder's death or disability.¹ The repricing did not alter expiration dates, vesting schedules, or the number of shares underlying the eligible options.¹

The company said the board acted after considering alternatives, consulting an independent compensation consultant, and receiving a recommendation from the People, Culture, and Compensation Committee, with deliberations occurring throughout 2026.¹ The filing states that as of the approval date, a majority of employee stock options were underwater, with exercise prices above the current market price.¹ In total, approximately 4.05 million shares were repriced, with prior exercise prices ranging from $6.48 to $33.11 per share.¹