Harish Shantharam
About Harish Shantharam
Harish Shantharam is Chief Financial Officer of ALX Oncology, appointed January 21, 2025, and aged 45 as of April 15, 2025 . He previously served as CFO of CymaBay Therapeutics through its acquisition by Gilead and held senior finance roles at Gilead (VP, Head of Global Commercial Finance) and Amgen; he holds an MBA from UCLA Anderson, a graduate degree in Industrial Engineering (UT Arlington), and is a CFA charterholder . ALX’s recent pay-versus-performance disclosure shows total shareholder return fell to $7.77 for a $100 investment by year-end 2024 versus $17.27 in 2023 and $13.07 in 2022, while net loss was $134.9M in 2024, providing context for compensation alignment .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| CymaBay Therapeutics | Chief Financial Officer | 2023–2024 | Led finance through late-stage transition and supported $4.3B sale to Gilead |
| Eikon Therapeutics | Senior Finance Consultant | 2022–2023 | Supported finance operations and CFO during growth phase |
| Gilead Sciences | VP, Head of Global Commercial Finance | 2011–2022 | Managed global commercial finance supporting $20–$30B revenue; BD and launches |
| Amgen | Commercial planning and operations roles | 2004–2011 | Forecasting, analytics, BD support across product portfolio |
External Roles
No public company board roles disclosed for Harish in ALX filings reviewed .
Fixed Compensation
| Component | 2025 Terms | Notes |
|---|---|---|
| Base Salary | $490,000 | Per employment letter |
| Target Bonus % | 40% of base | Annual incentive plan; metrics set by Board/Comp Committee |
| Cash Benefits | 401(k) and standard benefits | Company offers 3% employer contribution in 2024 and broad benefits |
Performance Compensation
- Annual cash incentive plan mechanics: bonuses funded against pre-set corporate and individual goals; administrator can adjust payouts; permissible metrics include revenue, net income, EBITDA, TSR, regulatory milestones, R&D milestones, cash flow, ROE/ROA, stock price, and more .
- Governance: Compensation committee uses Compensia as independent advisor; emphasizes at-risk pay, long-term equity, and shareholder feedback (97% say-on-pay approval in 2024) .
- 2025 CFO specifics: Target bonus at 40% of salary; specific metric weights for 2025 not disclosed; plan subject to clawback under Dodd-Frank-compliant Compensation Recovery Policy adopted July 2023 .
Equity Ownership & Alignment
| Equity Type | Grant Date | Shares/Units | Exercise/Strike | Vesting | Source |
|---|---|---|---|---|---|
| Inducement Stock Option | Jan 21, 2025 | 600,000 | $1.65 | 25% at 1-year cliff; then 1/48 monthly |
- Hedging and pledging of company stock are prohibited under ALX’s Insider Trading Policy (preclearance for certain trades required) .
- Ownership guidelines for executives are not disclosed in the proxy; director compensation limits and plan share availability are disclosed separately .
Employment Terms
| Provision | Outside Change-in-Control Period | During Change-in-Control Period (double trigger) | Notes |
|---|---|---|---|
| Severance – Salary | 100% of base salary (lump sum) | 100% of base salary (lump sum) | Applies upon termination without cause or for good reason |
| Severance – Bonus | Prorated target bonus | 100% of target bonus | Lump sum; CFO follows “other named executive officer” tier |
| COBRA | Up to 12 months | 12 months | Company-paid coverage for employee + dependents |
| Equity Acceleration | None specified outside CIC | 100% acceleration of unvested time-based awards | Performance-based awards excluded |
| Tax Gross-Ups | None | None | 280G best-net cut vs full-payment methodology |
| Clawback | Compensation Recovery Policy | Compensation Recovery Policy | Adopted July 2023; Dodd-Frank and Nasdaq compliant |
Performance & Financial Context
ALX quarterly fundamentals (last 8 quarters):
| Metric | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 | Q3 2025 |
|---|---|---|---|---|---|---|---|---|
| Net Income - (IS) ($USD) | -45,472,000* | -35,581,000* | -39,399,000* | -30,707,000* | -29,163,000* | -30,754,000* | -25,949,000* | -22,144,000* |
| EBITDA ($USD) | -47,816,000* | -37,548,000* | -41,305,000* | -32,343,000* | -30,399,000* | -31,609,000* | -23,282,000* | -22,379,000* |
Values retrieved from S&P Global.*
Pay-versus-performance TSR and net income trend:
| Year | Value of $100 Investment (TSR) | Net Income (Loss) ($USD) |
|---|---|---|
| 2021 | $24.93 | -$83,463,000 |
| 2022 | $13.07 | -$123,482,000 |
| 2023 | $17.27 | -$160,805,000 |
| 2024 | $7.77 | -$134,850,000 |
Operational updates affecting CFO scope: 30% workforce reduction announced Feb 28, 2025 to prioritize pipeline and extend cash runway, with ~$2.2M severance and benefits recognized in Q1 2025; the 8-K was signed by the CFO .
Governance & Compensation Committee
- Compensation Committee: Corey Goodman (Chair), Scott Garland, Chris Takimoto; six meetings held in 2024 .
- Independent advisor: Compensia; market-based peer review practices; emphasis on equity-heavy, at-risk compensation .
- Say-on-pay: 97% approval in 2024 .
Risk Indicators & Red Flags
- Hedging/pledging prohibited (alignment positive) .
- No tax gross-ups in CIC (shareholder-friendly) .
- Equity acceleration only on double trigger in CIC; time-based awards only (balanced approach) .
- Related-party transactions exist at company level (Tallac, venBio, ScalmiBio) but none specific to CFO disclosed; oversight via audit committee policy .
Investment Implications
- Compensation alignment: CFO pay is modestly cash-based with material equity via a 600,000-share inducement option at a low strike ($1.65), vesting 25% at the one-year anniversary then monthly—tying realized value directly to TSR and execution on key trials and financing cadence .
- Retention and selling pressure: The Jan 21, 2026 cliff is the first significant vest event; monitor Form 4 filings around that date and subsequent monthly vesting for potential stock sales and signals on confidence. Hedging/pledging bans reduce misalignment risk .
- Change-of-control economics: Double-trigger severance at 1x salary and 1x target bonus plus 100% acceleration of time-based equity makes the CFO economically neutral-to-supportive in strategic transactions without excessive entrenchment (no gross-ups) .
- Execution risk context: Persistent operating losses and low TSR through 2024 underscore the need for disciplined capital allocation and clinical execution; workforce reduction and pipeline prioritization tighten the CFO’s operational and financing constraints, making equity-linked incentives relevant for shareholder alignment .