Conatus Pharmaceuticals Inc. (CNAT)

[Theo]

Thanks nsomniyak, I did understand how the vesting schedule works and quite frequently encounter FORM 4s highlighting sales of stock satisfying the tax issue for granted options/stock i.e., "Represents shares withheld to satisfy tax withholding obligation upon vesting of time-based restricted stock units as required by the Issuer."
...generally, however, I find most people don't read the fine print for the codes in the FORMs let alone understand the meaning of them. They just see a Acquisition or Disposition but don't bother to check if it's Indirect or Direct, Open market or Private purchase and etc.,

Anyway, I guess what I was somewhat perplexed by was the month by month vesting rate (1/48 which is actually 4 years ) as well as the employment requirment: subject to the Reporting Person's continued employment or service relationship with the Issuer on each such vesting date.

Usually, it's more like half the options issued upfront (exercisable immediately with or without a price floor) and then perhaps the balance in 6 months or a year. And I've never seen the employment restriction spelled out before (except in cases of where the recipient was working as a consultant instead of as an employee for instance).

Overall, I don't find theses options to be excessively generous in comparison to what I've encountered over the years with other issuers and I certainly don't feel like they are giving away the ship...albeit granted it's still a helluva LOT more $$ than I've ever been offered to stick around with my employer