Daniel O’Connell
About Daniel O’Connell
Daniel O’Connell, age 55, is Chief Executive Officer of Acumen Pharmaceuticals (since December 2014) and a director (since April 2006). He co-founded Functional NeuroModulation Ltd. and was a founding member and former managing partner of NeuroVentures Capital, with a BA from Brown University and an MBA from the University of Virginia . In 2024, corporate performance goals tied to annual incentives were deemed 119% attained, supporting a maximum payout framework for the CEO’s bonus; his 2024 beneficial ownership was 2,657,738 shares (4.2% of outstanding), signaling meaningful alignment . Governance mitigates dual-role concerns: O’Connell is not independent and does not chair the board; the board is chaired independently by Sean Stalfort and the company separates the CEO and Chair roles .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Functional NeuroModulation Ltd. | Co-founder and CEO | Not disclosed | Clinical-stage deep brain stimulation therapies for Alzheimer’s disease |
| NeuroVentures Capital, LLC | Founding member; former managing partner | Not disclosed | Early-stage neurosciences investing, deal flow and portfolio construction |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| NeuroVentures Capital, LLC | Founding member; former managing partner | Not disclosed | Venture capital network in neurosciences; sourcing and capital allocation |
Fixed Compensation
| Metric | 2023 | 2024 | 2025 (Approved) |
|---|---|---|---|
| Base Salary ($) | $597,590 | $621,494 | $646,354 |
| Target Bonus % of Salary | 55% (per CEO employment agreement) | 55% | Not separately disclosed; CEO remains eligible under committee process |
| Actual Annual Bonus ($) | $427,277 | $406,768 | Not applicable |
Director pay: O’Connell receives no additional compensation for board service .
Performance Compensation
| Component | Metric(s) | Weighting | Target | Actual | Payout | Vesting Terms |
|---|---|---|---|---|---|---|
| Annual Cash Incentive (2024) | Corporate goals in R&D, operational effectiveness, brand progress | 100% corporate for CEO | Committee-set (undisclosed) | Corporate goals attained at 119% | $406,768 | Paid after year-end based on committee determination |
| RSUs (2024 grant) | Time-based (no performance metric) | N/A | 401,000 units | N/A | Grant-date FV $1,696,230 | 1/3 vested 1/2/2025; remaining 1/3 on 1/2/2026 and 1/2/2027, service-based |
| Stock Options (2024 grant) | Time-based (no performance metric) | N/A | 602,000 options | N/A | Grant-date FV $2,036,867 | 48 equal monthly installments from 1/2/2024 through 1/2/2028; exercise price $4.23; expires 1/2/2034 |
Notes:
- Compensation program design and targets are set by an independent Compensation Committee (chair: Dr. Jeffrey Ives) advised by Aon; CEO excluded from his own pay deliberations .
- No performance-vesting equity awards are disclosed; equity is time-based .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Total Beneficial Ownership | 2,657,738 shares; 4.2% of outstanding as of April 8, 2025 |
| Composition | 136,755 common shares + 2,520,983 options exercisable within 60 days of 4/8/2025 |
| Vested vs Unvested (12/31/2024) | Unvested RSUs: 76,000 (2023 grant) and 401,000 (2024 grant); market value at $1.72/sh: $130,720 and $689,720 |
| Options (key schedules) | 2019: 418,903 options, $0.72, fully vested ; 2021: 1,186,346 options ($1.19), 1/25 fully vested by 1/1/2025 ; 2022: 455,000 options ($5.19), monthly vesting through 1/19/2026 ; 2023: 472,500 options ($6.11), monthly vesting through 1/17/2027 ; 2024: 602,000 options ($4.23), monthly vesting through 1/2/2028 |
| Hedging/Pledging | Insider trading policy prohibits short sales, options, hedging transactions, and margin accounts . No pledges disclosed in beneficial ownership . |
| Ownership Guidelines | Executive ownership guidelines not disclosed; director policy amended in 2025 to include RSUs in annual board grants . |
Employment Terms
| Provision | CEO Terms |
|---|---|
| Agreement Status | Amended and restated employment agreement effective Jan 1, 2022 |
| Base Salary & Bonus Target | Base initially $551,200; target bonus 55% of salary; current salary approved at $646,354 for 2025 |
| Non-Compete / Non-Solicit | Non-compete: 1 year post-termination; Non-solicit: 1 year post-termination; perpetual confidentiality and IP assignment |
| Severance (No CIC) | 12 months base salary + up to 12 months COBRA reimbursement, subject to release |
| Severance (With CIC – Double Trigger) | If terminated without cause or resigns for good reason within 3 months pre- to 12 months post-CIC: 18 months base salary + 18 months COBRA reimbursement + lump sum 1.5x target bonus + full acceleration of time-based equity; performance awards per award terms; subject to release |
| 280G Treatment | “Better-of” reduction to avoid excise tax if it results in greater after-tax benefit (no tax gross-up) |
| Clawback | Not disclosed |
Board Governance
- Board service: Director since 2006; current Class III term expires in 2027 .
- Committee roles: O’Connell is not a member of Audit, Compensation, or Nominating committees .
- Independence: O’Connell is not independent; the board’s Chair (Sean Stalfort) is independent .
- Board activity: Board met six times in 2024; each member attended ≥75% of meetings .
- Director compensation framework (for non-employee directors): annual retainers and committee fees; 2025 amendment adds RSUs to annual director grants .
Compensation Structure Analysis
- Shift toward equity mix: RSU grant-date value rose from $696,540 (2023) to $1,696,230 (2024), while option grant-date value decreased modestly from $2,190,177 to $2,036,867, increasing fixed equity elements (RSUs) versus options risk profile .
- Incentive outcomes: 2024 corporate performance assessed at 119% resulting in a $406,768 bonus; the CEO’s incentive is 100% corporate-weighted, reinforcing alignment to centralized milestones rather than individual metrics .
- Perquisites: Limited to de minimis items (cell phone, wellness, HSA, life insurance premium reimbursements, $25 gift cards with $1 tax gross-up) .
- Consultant oversight: Aon engaged to set peer comparative frameworks and compensation recommendations; committee retains independent judgment .
- No related party transactions disclosed outside standard compensation .
Equity Vesting & Potential Selling Pressure
| Award | Quantity | Vesting Cadence | Key Dates |
|---|---|---|---|
| RSU (2023) | 76,000 | 1/3 annually | 1/17/2024, 1/17/2025 vested; final tranche 1/17/2026 |
| RSU (2024) | 401,000 | 1/3 annually | 1/2/2025 vested; remaining 1/2/2026 and 1/2/2027 |
| Option (2024, $4.23) | 602,000 | 48 monthly installments | Fully vests by 1/2/2028; expires 1/2/2034 |
| Earlier Options (various) | See ownership table | Monthly vest schedules | 2022 series completes 1/19/2026; 2023 series completes 1/17/2027; prior grants largely fully vested |
Insider trading policy prohibits hedging and margin accounts, reducing forced selling risk from margin calls; no pledging is disclosed .
Director Compensation (for completeness)
- O’Connell receives no separate director compensation; non-employee director fee schedule and annual equity are disclosed for others; board updated director equity mix in March 2025 .
Investment Implications
- Alignment: 4.2% beneficial ownership and substantial unvested RSUs/options suggest long-dated alignment with program milestones; policy bans hedging/margin accounts, limiting misalignment risk .
- Retention risk: Double-trigger CIC with 18 months salary, 1.5x bonus, and full acceleration of time-based equity reduces flight risk and protects continuity through strategic events .
- Near-term supply/demand on stock: RSU tranches in January 2026 and January 2027 and continuous monthly option vesting through 2028 create periodic potential selling windows; monitor Form 4s around those dates for trading pressure signals .
- Pay-for-performance: Cash bonuses tied to R&D and operational objectives (119% attainment in 2024) indicate internal milestone focus; absence of market-based metrics (e.g., TSR) in the incentive design may reduce direct linkage to shareholder returns in pre-commercial phases .
- Governance quality: Independent chair and committee independence mitigate CEO dual-role concerns; no related-party transactions disclosed; director compensation policy modernized to include RSUs in 2025 .