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DK's avatar

Thank you. Interesting, isn't it? At least I find it interesting when a company will not disclose the PSU criteria.

I have recently read MRVI's new CEO comp package and he's got PSU as well. I have emailed MRVI and they have confirmed not disclosing but telling me (assuring?) comp is aligned with shareholders like myself. :)

Not sure I will remain a shareholder.

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UnlearningCFA's avatar

Yeah, I tend to be intrigued when I come across grants like these. The $MRVI CEO comp package is interesting because the awards can vest-in-full immediately in the event of a partial sale. It also looks as though the PSUs are converted to RSUs if a change of control occurs. My one minute interpretation of this seems as though the downside is quite protected for the CEO.

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DK's avatar

I had a similar thought. They will try to sell themselves based on the CEO background. They do M&A or something and then sell. They rejected an offer a few years ago. Looks silly in hindsight.

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UnlearningCFA's avatar

I tend to shy away from opining on comp schemes for pharma companies, especially in the early development stages. The outcomes tend to be quite binary, and so are the compensation schemes.

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