James Loerop
Aclaris TherapeuticsAbout James Loerop
James Loerop, age 61, serves as Chief Business Officer at Aclaris Therapeutics (ACRS) since January 2022; he holds a B.S. in marketing from Western Michigan University and has led global business and corporate development at multiple biopharma companies . During his tenure, Aclaris reported annual revenues of $29.5M*, $31.2M*, and $18.7M* in FY 2022–2024, with EBITDA of -$114.4M* and -$52.2M* in FY 2023–2024, reflecting ongoing portfolio transition and cost actions; details below with S&P Global data. Values retrieved from S&P Global.
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Anika Therapeutics, Inc. | EVP, Business Development & Strategic Planning | Jul 2019–Jan 2022 | Led global BD; strategic planning for joint preservation portfolio |
| Lupin Pharmaceuticals, Inc. | Chief Corporate Development Officer | 2017–Jul 2019 | Member of ELT; led global BD and corporate development |
| Alexion Pharmaceuticals, Inc. | SVP, Global Business Development | — | Senior leadership in BD at rare disease leader |
| GlaxoSmithKline (GSK) | VP, North America Business Development | — | Led regional BD at global pharma |
| Stiefel Laboratories, Inc. (pre-GSK acquisition) | SVP, Global Corporate Development | — | Drove corporate development until acquisition by GSK |
External Roles
No current public company board roles disclosed for Mr. Loerop .
Fixed Compensation
| Metric | 2023 | 2024 |
|---|---|---|
| Base Salary ($) | $435,000 | $400,000 (effective Feb 2024) |
| Target Bonus % of Salary | 40% | 40% |
| Actual Bonus Paid ($) | $121,800 | Not disclosed (Loerop was not an NEO in 2024) |
Performance Compensation
Annual Bonus Mechanics (2023)
| Component | Structure / Inputs | 2023 Disclosure for Loerop |
|---|---|---|
| Weighting | 75% corporate goals; 25% individual goals | Applied to all NEOs except CEO |
| Target Bonus ($) | Base × Target % | $174,000 (40% of $435,000) |
| Corporate Funding Factor | Company attainment multiplied by 75% weighting | 45% noted for officers; reflects 60% corporate attainment × 75% weighting |
| Individual Funding Factor | Individual attainment × 25% weighting | 25% for Loerop |
| Actual Bonus ($) | Formula with discretion | $121,800 paid |
2023 Equity Grants (grant date 2/1/2023)
| Award Type | Shares/Units | Exercise/Strike ($) | Grant Date Fair Value ($) | Vesting Schedule |
|---|---|---|---|---|
| Stock Options | 105,000 | $16.97 | $1,253,812 | Equal installments over 4 years beginning first anniversary of grant; one-third vested 2/1/2024, remainder vest 2/1/2025 and 2/1/2026 |
| RSUs | 30,000 | — | $509,100 | Equal installments over 4 years beginning first anniversary of grant; one-third vested 2/1/2024, remainder vest 2/1/2025 and 2/1/2026 |
Vesting detail and realized value:
- RSUs vested during 2023: 11,250 shares; value realized $190,913 .
- For 2023 grants, derived schedule amounts: 35,000 options and 10,000 RSUs vest on each of 2/1/2024, 2/1/2025, 2/1/2026 (based on 105,000 options and 30,000 RSUs with equal three-installment vesting) .
Equity Ownership & Alignment
| Item | Disclosure |
|---|---|
| Total Beneficial Ownership | 137,767 shares; less than 1% of shares outstanding (as of Apr 16, 2024) |
| Hedging/Pledging | Company policy prohibits short sales, options, hedging transactions, margin accounts, and pledging for directors and officers |
| Stock Ownership Guidelines | Not disclosed in 2024/2025 proxies for executives |
| Vested vs Unvested | Vested RSUs in 2023: 11,250; ongoing vest for 2023 grants through 2026 as noted above |
| Options In/Out of the Money | Not disclosed for Loerop; no option exercises reported in 2023 |
Employment Terms
| Provision | Unrelated to Change-of-Control | Related to Change-of-Control |
|---|---|---|
| Severance (cash) | $609,000 (assumes 100% of target bonus earned but unpaid) | $783,000 |
| Equity Acceleration | RSUs: — (no acceleration) | RSUs: $66,938 acceleration value |
| Options Acceleration | Not applicable (no acceleration) | Not applicable (no acceleration) |
| Continued Health Coverage | $21,624 value (COBRA; employer portion for 12 months) | $21,624 |
| Term Structure | Executives have employment agreements providing severance upon death/disability, termination without cause, resignation for good reason, or non-renewal by Company, subject to release of claims | |
| Triggers | Change-of-control severance applies for qualifying terminations on or within 3 months prior to or within 12 months following a change of control (double-trigger) | |
| Clawbacks | SOX 304 clawback applicable to CEO/CFO upon misconduct-related restatement; no specific clawback disclosed for other NEOs |
Performance & Track Record (Company context)
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Revenues ($USD) | $29.5M* | $31.2M* | $18.7M* |
| EBITDA ($USD) | n/a* | -$114.4M* | -$52.2M* |
Values retrieved from S&P Global.
Notes: Columns are oldest to newest; derived from SPGI fundamentals via GetFinancials.
Governance, Peer Group, and Shareholder Feedback
- Independent compensation consultant: Pearl Meyer engaged by Compensation Committee in 2024 for peer group selection, program design, and market analysis .
- Say-on-pay results: 64% approval at 2024 annual meeting vs 98% in 2023; Compensation Committee attributed lower support primarily to stock price decline and conducted limited outreach; no material program changes made following the vote .
- Insider trading policy: Enforces blackout periods, pre-clearance, and prohibits hedging/pledging for alignment .
Compensation Structure Analysis
- Year-over-year cash vs equity mix: 2023 mix for Loerop skewed to equity (options $1.25M; RSUs $0.51M) with base $0.435M and bonus $0.122M, indicating higher at-risk pay aligned with long-term equity value .
- 2024 base salary reduction: Loerop agreed to reduce base to $400,000 while maintaining 40% bonus target, signaling cost discipline and alignment with stage of company .
- Equity award design: 70% options / 30% RSUs allocation for 2023 grants; four-year vesting fosters retention through 2026 .
- Option repricing/modification: No repricing disclosed; no 2023 option exercises by NEOs .
Risk Indicators & Red Flags
- Hedging/Pledging: Prohibited; reduces misalignment risk .
- Clawbacks: Explicitly noted for CEO/CFO under SOX 304; no broader clawback policy disclosed for other NEOs .
- Say-on-pay softness: 64% support in 2024 indicates investor sensitivity to pay-performance alignment amid stock weakness .
Equity Ownership & Alignment Details
| Ownership Date | Shares Beneficially Owned | Percent of Shares Outstanding |
|---|---|---|
| Apr 16, 2024 | 137,767 | <1% |
Expertise & Qualifications
- Education: B.S. in marketing, Western Michigan University .
- Domain expertise: Business and corporate development across large-cap and specialty pharma; leadership roles at Alexion, GSK, Stiefel, Lupin, Anika .
- Tenure: Chief Business Officer at Aclaris since January 2022 .
Investment Implications
- Retention: 2023 equity grants vesting through 2026 and 12-month severance (with double-trigger change-of-control protections) lower near-term departure risk; absence of option acceleration in CoC scenarios increases stickiness .
- Pay-for-performance: Bonus funding tied 75% to corporate goals and 25% to individual performance aligns cash incentives; 2024 base cut to $400k maintains discipline amid revenue decline .
- Selling pressure: RSU and option vesting dates in 2025–2026 could create periodic liquidity windows; hedging/pledging ban mitigates leverage-related selling risks .
- Ownership alignment: Personal stake <1% suggests limited direct equity exposure; alignment relies on outstanding RSUs/options and company policy rather than large share ownership .
- Shareholder sentiment: Weaker 2024 say-on-pay support underscores scrutiny; continued engagement and demonstrable operational progress will matter for future approvals .