Joshua Reed
AlkermesAbout Joshua Reed
Joshua Reed is Chief Financial Officer of Alkermes (appointed effective Sept. 15, 2025), leading FP&A, Accounting & Financial Operations, Tax, Procurement, and Strategic Sourcing, and serving on the management committee . He brings 30+ years of finance experience, previously CFO of Omega Therapeutics (May 2022–May 2024) and Aldeyra Therapeutics (July 2018–May 2022), and earlier held senior finance roles at Bristol Myers Squibb and in banking; he serves on Scholar Rock’s board and holds a BS (Rutgers) and MBA (Michigan Ross) . Company context: Alkermes delivered “strong total shareholder returns through Dec. 31, 2024,” with >$1.5B revenue and ~$452M EBITDA from continuing ops in 2024 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Omega Therapeutics (public) | Chief Financial Officer | May 2022 – May 2024 | Public company CFO experience, capital markets and operating finance in biotech . |
| Aldeyra Therapeutics (public) | Chief Financial Officer | July 2018 – May 2022 | Public biotech CFO; financing and pipeline support . |
| Bristol Myers Squibb | Vice President & Head of Finance Operations, U.S. & Puerto Rico (after >10 years at BMS) | n/a | Large-cap biopharma finance leadership; scale operating rigor . |
| JPMorganChase; Credit Suisse First Boston; Chase Manhattan Bank | Various finance/banking roles | n/a | Capital markets and transaction experience relevant to treasury/financing . |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Scholar Rock Holding Corp. (public) | Director | Current | External board perspective in biotech; governance and finance oversight . |
Fixed Compensation
| Component | Detail | Source |
|---|---|---|
| Base Salary | $615,000 starting annual salary | |
| Target Annual Bonus | 50% of base salary, under Reporting Officer Performance Pay Plan (prorated first year per start date conditions) | |
| Pay Philosophy/Peer Positioning | Executive pay targeted around 50th percentile of peer group; adjusted for role scope and performance |
Performance Compensation
| Incentive Element | Structure | Metrics/Weighting | Payout/Notes | Source |
|---|---|---|---|---|
| Short-Term Incentive Plan (STIP) | Annual cash bonus | 2024 company design: Financial & Commercial 50%; Neuroscience Pipeline 40%; Corporate Responsibility 10% | 2024 company performance payout approved at 100% for company; other NEOs 100–110% based on individual perf. (Reed joined in 2025; structure indicates current design) | |
| Long-Term Equity – New Hire Options | 10-year nonqualified stock options; grant-date value $2,345,000; vest ratably over four years (annual anniversaries) | Equity under 2018 Plan; value converted to shares at grant; options align to share price appreciation | Time-based vesting; subject to plan terms | |
| Long-Term Equity – New Hire RSUs | RSUs grant-date value $1,155,000; vest ratably over four years (annual anniversaries) | Equity under 2018 Plan | Time-based vesting; subject to plan terms | |
| Ongoing LTI Design (Program Context) | Company uses mix of performance-vesting PRSUs and time-vesting RSUs/options; PRSUs (2024 design) tied to 3-year financial & pipeline goals with relative TSR modifier ±25% | PRSU weighting: CEO >50% of LTI; other NEOs 25% in 2024; increased to 33% in 2025 for other NEOs | Strong pay-for-performance governance with caps, independent consultant, clawbacks |
Equity Ownership & Alignment
| Topic | Detail | Source |
|---|---|---|
| Initial Equity Opportunity | Options ($2.345M value) + RSUs ($1.155M value), vesting in equal annual tranches over 4 years | |
| Change-in-Control Treatment | Equity awards granted post-2024 under the Amended 2018 Plan feature double-trigger vesting (requires qualifying termination in connection with a Sale Event); unassumed awards accelerate at target or actual per plan | |
| Clawback/Recoupment | Expanded 2021 Clawback Policy (equity and certain cash incentive) and October 2023 Recoupment Policy compliant with SEC/Nasdaq | |
| Hedging/Pledging | Prohibited for officers and directors per Insider Trading Policy | |
| Ownership Guidelines | Share ownership and holding guidelines in place for executive officers to align with shareholder interests |
Employment Terms
| Term | Summary | Source |
|---|---|---|
| Employment Agreement | Reed’s employment agreement is on the Company’s standard executive Employment Agreement form (as referenced in Q3’25 10-Q) | |
| Termination – Without Cause / Good Reason | Cash severance of 1.0x (Base Salary + “Average Incentive Compensation”) paid over 12 months, plus up to 12 months continued health benefits (subject to COBRA coordination), conditioned on release | |
| Change-in-Control (within 24 months) | Lump sum of 1.5x (Base Salary [or higher if increased pre-CoC] + Average Incentive Compensation) and up to 18 months of health benefits; 280G best-net cutback (no tax gross-up) | |
| Non-Compete/Non-Solicit | One-year non-solicit of employees/customers; confidentiality obligations; injunctive relief available | |
| Dispute Resolution/Law | Arbitration for most disputes; Massachusetts governing law and jurisdiction provisions | |
| 10b5-1 / Trading Plans | During the quarter ended Sept. 30, 2025, no officer or director adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading plans (indicator of limited near-term programmatic selling) |
Vesting Schedules and Insider Selling Pressure
| Topic | Detail | Source |
|---|---|---|
| Vesting – Options | Four-year ratable vesting (annual anniversaries); 10-year term; exercise price = closing price on grant date | |
| Vesting – RSUs | Four-year ratable vesting (annual anniversaries) | |
| Potential Selling Pressure | No 10b5-1 adoptions/modifications/terminations by officers/directors in Q3’25 disclosed; hedging/pledging prohibited, reducing forced sell risk |
Compensation Structure Analysis (Alignment Signals)
- Pay-Mix/Leverage: Program emphasizes “at-risk” pay with sizeable equity; company-wide PRSUs tied to multi-year financial/pipeline goals and a relative TSR modifier align outcomes with shareholder returns .
- Governance Strengths: Independent compensation consultant, clawback/recoupment policies, double-trigger CoC equity, ownership/holding guidelines, caps on payouts, and anti-hedging/pledging policies reduce misalignment risk and discourage short-termism .
- Market Positioning: Targeting ~50th percentile of peers with adjustments for scope/performance helps balance competitiveness and pay discipline .
Performance & Track Record (Role-Relevant Highlights)
| Area | Evidence |
|---|---|
| CFO/Finance Leadership | Public company CFO at Omega Therapeutics and Aldeyra Therapeutics; >10 years at BMS culminating as VP & Head of Finance Ops for U.S. & Puerto Rico . |
| Capital Markets & Controls | Banking background (JPMorganChase, CSFB, Chase Manhattan Bank) and SOX principal financial officer certifications at Alkermes (Q3’25 10-Q) . |
| Company Backdrop | Alkermes achieved >$1.5B revenues and ~$452M EBITDA from continuing operations in 2024; repurchased $200M shares; retired ~$290M debt; entered 2025 with strong balance sheet . |
Risk Indicators & Red Flags
| Category | Observation | Source |
|---|---|---|
| Hedging/Pledging | Prohibited for officers/directors (reduces misalignment risk) | |
| Clawbacks | Robust clawback and recoupment frameworks in place | |
| 280G Gross-Ups | No tax gross-ups; 280G best-net cutback under Employment Agreement | |
| Equity Repricing | Explicit prohibition on option/SAR repricing without shareholder approval | |
| Trading Plans (near-term) | No new 10b5-1 or other plans adopted/modified/terminated in Q3’25 |
Say-on-Pay & Shareholder Feedback
| Topic | Detail | Source |
|---|---|---|
| Say-on-Pay Support | ~98% approval at 2024 AGM on 2023 compensation | |
| Shareholder Engagement | Regular outreach; program enhancements (objective STIP metrics, greater PRSU use, double-trigger equity) reflect investor feedback |
Investment Implications
- Alignment/Shareholder Safeguards: Reed’s package emphasizes equity with four-year vesting, within a governance framework featuring double-trigger CoC equity, robust clawbacks, and anti-hedging/pledging—favorable for long-term alignment and reduced headline risk .
- Retention & Incentive Design: Base ($615k) and 50% bonus target are competitive; combined with ~$3.5M initial equity (options + RSUs), the structure should support retention and performance focus without outsized guaranteed cash .
- Change-of-Control Economics: Cash severance at 1.0x (standard) and 1.5x upon CoC, plus benefits continuation and 280G cutback (no gross-up), indicate disciplined severance risk while ensuring stability during strategic events .
- Selling Pressure Outlook: No Q3’25 10b5-1 activity and policy bans on pledging mitigate near-term selling overhang from the newly granted awards; vesting cadence is annual rather than front-loaded .
- Execution Risk/Opportunity: Reed’s prior public CFO experience and large-cap operating finance background (BMS) should be additive for capital allocation, margin discipline, and pipeline funding, as Alkermes targets continued growth and profitability following strong 2024 financial performance .