Christopher Heery
About Christopher Heery
Christopher Heery, M.D., age 45, has served as Arcellx’s Chief Medical Officer since April 2021; he is board certified in Medical Oncology and Internal Medicine and holds a B.A. from Duke University and an M.D. from East Carolina University Brody School of Medicine, with residency at the University of Illinois at Chicago . Company performance during 2024 included completing enrollment of the pivotal iMMagine-1 trial for anito-cel, achieving a 99% manufacturing success rate, presenting positive clinical data, and initiating/dosing the first patient in the earlier-line Phase 3 iMMagine-3 study, alongside continued pipeline progress (ACLX-002 in AML and an anito-cel Phase 1 in myasthenia gravis) . Arcellx’s 2024 collaboration revenue was $107.9 million (vs. $110.3 million in 2023, -2%), with a net loss of $107.3 million . Total Shareholder Return (TSR) for 2024 was 38%, versus a peer average of -22% (Nasdaq Biotechnology Index) .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Precision BioSciences, Inc. | Chief Medical Officer | May 2019 – Apr 2021 | Oversaw clinical development of an allogeneic CAR‑T platform; provided clinical insight into gene editing therapeutics |
| Bavarian Nordic A/S | Chief Medical Officer | Oct 2016 – Apr 2019 | Oversaw clinical development for immuno‑oncology and infectious disease portfolios |
| National Cancer Institute (NCI) | Staff Clinician; Associate Research Physician & Head, Clinical Trials Group | Apr 2012 – Nov 2013; Nov 2013 – Sep 2016 | Led Clinical Trials Group; part of broader effort to create new immunotherapies |
| NCI Medical Oncology Branch | Medical Oncology Fellow; Adjunct Appointment in Genitourinary Malignancies Branch | 2009 – 2012 (Fellow); Adjunct appointment (dates not specified) | Clinical training and adjunct research responsibilities |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Medkine, Inc. | Director | Oct 2021 – present | Board service (no additional impact disclosed) |
Fixed Compensation
| Year | Base Salary ($) | Target Bonus (%) | Target Bonus ($) | Actual Bonus Paid ($) |
|---|---|---|---|---|
| 2025 (current) | 500,000 | 45% | 225,000 | Not disclosed |
| 2024 | 480,000 | 45% | 216,000 | 302,000 |
| 2023 | 480,960 | Not disclosed | Not disclosed | 192,000 |
| 2022 | 430,000 | Not disclosed | Not disclosed | 249,400 |
Notes:
- 2024 bonuses were paid in March 2025 based on achievement of company goals .
- Base salaries are reviewed annually; 2024 base for Dr. Heery remained $480,000 .
Performance Compensation
| Metric | Weighting | Target | Actual Outcome | Bonus Payout | Vesting |
|---|---|---|---|---|---|
| Budgetary Goals | 15% | Not disclosed | Met budget; received $68.3M clinical milestone from Kite for iMMagine‑1 enrollment | See total payout | N/A – cash bonus paid Mar 2025 |
| Manufacturing Goals | 35% | Not disclosed | Completed technical transfer to Kite (FDA‑cleared); 99% manufacturing success rate for iMMagine‑1 | See total payout | N/A – cash bonus paid Mar 2025 |
| Clinical Program Goals | 50% | Not disclosed | Completed iMMagine‑1 enrollment; presented new positive data; AML ACLX‑002 progress; initiated MG Phase 1; first patient dosed in iMMagine‑3 | See total payout | N/A – cash bonus paid Mar 2025 |
| Stretch Goals (clinical/manufacturing/pipeline) | Up to +50% | Not disclosed | Advanced pipeline; BLA readiness and launch activities | Company achieved 100% core + 40% stretch; NEO bonus payouts at 140% of target | N/A – cash bonus paid Mar 2025 |
Equity Ownership & Alignment
| Holder | Shares Beneficially Owned | % of Outstanding | As-of Date | Shares Outstanding |
|---|---|---|---|---|
| Christopher Heery, M.D. | 295,107 | <1% | Apr 4, 2025 | 55,072,693 |
- Insider trading policy prohibits hedging and pledging of company securities; executive officers are barred from derivative transactions and pledging as collateral .
- Clawback policy adopted Sept 2023 requires reasonably prompt recovery of incentive-based compensation from current/former executive officers in the event of an accounting restatement .
Option exercises and stock vesting (2024):
| Name | Options Exercised (#) | Value Realized on Exercise ($) | Stock Awards Vested (#) | Value Realized on Vesting ($) |
|---|---|---|---|---|
| Christopher Heery | 177,976 | 9,307,750 | Not disclosed | Not disclosed |
Outstanding equity awards (as of Dec 31, 2024):
Option awards
| Grant Date | Exercisable (#) | Unexercisable (#) | Exercise Price ($/sh) | Expiration |
|---|---|---|---|---|
| 6/9/2021 | 10,901 | 3,634 | 6.28 | 6/9/2031 |
| 6/9/2021 | 43,604 | 21,802 | 6.28 | 6/9/2031 |
| 2/3/2022 | 56,522 | 75,894 | 15.00 | 2/3/2032 |
| 9/28/2022 | 19,166 | 20,834 | 19.97 | 9/28/2032 |
| 1/3/2023 | 36,532 | 39,710 | 31.03 | 1/3/2033 |
| 1/2/2024 | 13,772 | 46,324 | 56.15 | 1/2/2034 |
RSU awards (unvested)
| Grant Date | RSUs Unvested (#) | Vesting Schedule |
|---|---|---|
| 2/7/2022 | 22,556 | 1/3 annually from vesting commencement date |
| 1/3/2023 | 33,039 | 1/3 annually from vesting commencement date |
| 1/2/2024 | 39,063 | 1/3 annually; grant dated with S‑8 filing timing |
2024 equity grants
| Grant Date | Award Type | Shares | Exercise Price ($/sh) | Grant Date Fair Value ($) | Vesting |
|---|---|---|---|---|---|
| 1/2/2024 | Stock Options | 60,096 | 56.15 | 2,547,421 | 1/48 monthly over 4 years |
| 1/2/2024 | RSUs | 39,063 | N/A | 2,193,387 | 1/3 annually over 3 years |
Vesting mechanics and schedules:
- 2024 options: vest 1/48 monthly after vest commencement; 2024 RSUs: vest 1/3 annually .
- Heery’s prior options vest 1/48 monthly (various grants); RSUs vest 1/3 annually (Feb 7, 2022 and Jan 3, 2023 awards) .
Employment Terms
| Term | Details |
|---|---|
| Employment Letter | Confirmatory employment letter effective Jan 31, 2022; at‑will employment |
| Current Compensation | Annual base salary $500,000; annual target bonus 45% of base |
| Change-in-Control (CIC) – Double Trigger | If terminated without cause or resigns for good reason within 3 months before to 24 months after CIC: lump sum equal to 18 months base salary + 150% of target bonus; up to 18 months COBRA; 100% acceleration of unvested time‑based equity (performance‑based awards per applicable agreement) |
| Non‑CIC Termination | If terminated without cause outside CIC period: lump sum equal to 12 months base salary; prorated target bonus; up to 12 months COBRA |
| Clawback | Compensation Recovery Policy adopted Sept 2023; mandatory recovery of incentive‑based compensation upon accounting restatement |
| Hedging/Pledging | Prohibited for executives; no derivative transactions or pledging of company stock |
| Single‑Trigger CIC | Not provided; no single‑trigger severance |
| Excise Tax Gross‑Ups | Not provided; payments adjusted to deliver greatest after‑tax benefit (280G “best‑net” cutback) |
Multi-Year Compensation (Summary)
| Year | Salary ($) | Bonus ($) | Stock Awards ($) | Option Awards ($) | All Other ($) | Total ($) |
|---|---|---|---|---|---|---|
| 2024 | 480,960 | 302,400 | 2,193,387 | 2,547,422 | 11,160 | 5,535,329 |
| 2023 | 480,960 | 192,000 | 1,537,785 | 1,639,028 | 10,440 | 3,860,213 |
| 2022 | 430,000 | 249,400 | 1,207,161 | 3,019,271 | 9,150 | 4,914,982 |
Compensation Structure Analysis
- Target bonus opportunities for NEOs (including Heery) were positioned at the competitive 50th percentile for 2024; Heery’s target was 45% of base salary and payouts were 140% of target based on achievement of core and stretch goals .
- The company is shifting toward greater use of RSUs given higher retentive value and lower equity burn versus a 50/50 options/RSU mix; 2024 value‑adjusted equity burn rate was 3.3%, below the 5.2% ISS benchmark for Russell 3000 Biotech/Pharma .
- Base salary reviews position NEOs near 40th–55th percentiles with total cash compensation targeting ~50th percentile; Heery’s 2024 base remained $480,000 .
Say‑on‑Pay & Shareholder Feedback
- 2024 Say‑on‑Pay approval was ~56.4% (excluding abstentions and broker non‑votes), prompting outreach to top holders and enhanced disclosures .
Risk Indicators & Red Flags
- Anti‑hedging/anti‑pledging policy reduces misalignment risk .
- Mandatory clawback policy (SEC/Nasdaq compliant) mitigates restatement‑related risk .
- No single‑trigger CIC; no excise tax gross‑ups; best‑net cutback applies .
- Option exercises in 2024 by Heery (177,976 shares; $9.31M value realized) could indicate liquidity but are not, by themselves, evidence of share disposal; sale activity not disclosed in the proxy .
Expertise & Qualifications
- Board certified in Medical Oncology and Internal Medicine; education at Duke (B.A.) and East Carolina University Brody School of Medicine (M.D.); internal medicine residency at University of Illinois at Chicago .
- Deep clinical development leadership across CAR‑T, immuno‑oncology, and gene editing programs .
Investment Implications
- Pay-for-performance alignment: Heery’s cash incentive is tied to budget, manufacturing transfer, clinical milestones, and pipeline progress; 2024 payout at 140% supports strong execution across critical value drivers (iMMagine‑1 enrollment, transfer to Kite, 99% manufacturing success, Phase 3 initiation) .
- Retention: Significant unvested RSUs and unexercisable options across 2022–2024 grants create multi‑year retention hooks; shift to RSUs increases retentive value and lowers burn/dilution .
- Alignment and governance: Anti‑hedging/pledging and a mandatory clawback policy, plus double‑trigger CIC and absence of gross‑ups, reflect shareholder‑friendly structures .
- Watch items: Option exercises in 2024 (value realized ~$9.3M) may precede diversification, but vesting schedules and prohibitions on pledging limit misalignment; modest 2024 Say‑on‑Pay support (~56%) suggests continued investor scrutiny of executive equity and bonus outcomes .
- Company performance under Heery’s tenure shows operational milestones and a positive 2024 TSR (+38%) versus peers, while revenue remains collaboration‑driven and losses persist pending product approvals, underscoring execution risk inherent to clinical‑stage biopharma .