Chintu Patel
Amneal PharmaceuticalsAbout Chintu Patel
Co-Founder, Co-Chief Executive Officer, and Director of Amneal Pharmaceuticals since August 2019; previously Co‑Chairman of the Board from May 2018 to August 2019 and Co‑Chairman/Co‑CEO of Amneal from 2002 until the Impax Combination. Age 53; holds a bachelor’s degree in Pharmacy from Rutgers and an honorary doctorate from Long Island University. 2024 financial performance: net revenue grew 16.7% to $2.794B and adjusted EBITDA grew 12.4% to $627M; TSR outperformed the Russell 2000 and Dow Jones U.S. Select Pharmaceuticals indices, while net leverage fell to 3.9x from 7.4x in 2019 . In 2023, net revenue grew 8% and adjusted EBITDA 8.6% .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Amneal (pre-Combination) | Co‑Chairman and Co‑CEO | 2002–2018 | Built vertically integrated generic and specialty platform; positioned for 2018 Impax Combination . |
| Amneal (public) | Co‑Chairman (Board) | May 2018–Aug 2019 | Transition leadership during post‑Combination period . |
| Amneal (public) | Co‑CEO, Director | Aug 2019–present | Led diversification into biosimilars/injectables; accelerated specialty pipeline; deleveraging . |
| Eckerd Pharmacy | Pharmacist, Senior Manager | 1994–2002 | Frontline pharmacy operations leadership; awarded recognition . |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Asana Biosciences | Board member | Ongoing | Innovative science/drug delivery; adjacencies to Amneal . |
| Kashiv Biosciences | Board member | Ongoing | Collaboration on biosimilars/505(b)(2); related‑party transactions with Amneal . |
| Prolong Pharmaceuticals | Board member | Ongoing | Drug delivery technologies; portfolio adjacencies . |
| Long Island Association | Board member | Ongoing | Regional economic leadership . |
| Long Island University | Board member | Ongoing | Academic governance/community ties . |
| Irada International Foundation | Founder (with spouse) | Ongoing | Philanthropy in health/education/community outreach . |
Fixed Compensation
| Metric | 2023 | 2024 |
|---|---|---|
| Base Salary ($) | $750,000 | $800,000 |
| Target Bonus (% of salary) | 100% | 100% |
| Actual Annual Incentive Paid ($) | $910,500 | $880,000 |
| Stock Awards (Grant Date Fair Value, $) | $664,219 | $5,473,333 |
| Perquisites – Personal use of company car/driver ($) | $24,302 | $30,388 |
Notes:
- Employee directors receive no separate director compensation .
Performance Compensation
| Component | Metric | Target | Actual/Determination | Payout/Vesting |
|---|---|---|---|---|
| Annual Incentive (AIP) 2023 | Adjusted EBITDA | $515M | Result $558M; Committee approved +$12M adjustment → 110.7% of target; Company multiplier 121.4%; Individual multiplier 100% | $910,500 cash; paid March 2024 |
| Annual Incentive (AIP) 2024 | Adjusted EBITDA | $600M | Result $627.4M → 109.2% base multiplier; Committee set 110.0% Company multiplier; Individual multiplier 100% | $880,000 cash; paid March 2025 |
| 2024 RSU Grant | Time‑based RSUs | 370,370 units | Grants dated 3/4/2024 | Vest 25% annually on 3/4/2025, 2026, 2027, 2028 |
| 2024 PSU Grant | Stock price growth (relative to 30‑day avg $5.66) | Target 666,667; Threshold 333,334; Max 1,333,334 units | Performance period 3/1/2024–2/28/2027; payout 50% at 125% of price target; 200% at ≥300% of target | Earned PSUs vest at end of period (2/28/2027) |
| 2023 PSU Grant | Stock price growth (30‑day avg $2.34) | Target 366,972; Max 733,944 units | Performance period 3/1/2023–2/28/2026; estimated above target at 12/31/2023 | Earned PSUs vest at period end |
| 2022 PSU Grant | Stock price growth | Target 579,710 units | Performance period 3/1/2022–2/28/2025; actual at target (100%) | Vested following period end |
Program features:
- AIP multipliers: Co‑CEOs Threshold 25%, Target 100%, Max 150% of base salary .
- Clawback policy compliant with SEC/Nasdaq listing standards for restatements .
- Anti‑hedging policy prohibits short sales and hedging; pledging prohibition applies to directors/executives who are not Amneal Group Members .
Equity Ownership & Alignment
| Date | Shares Beneficially Owned | % of Class | Options (Exercisable) | Unvested RSUs | Unvested PSUs (select) |
|---|---|---|---|---|---|
| March 11, 2024 | 25,318,839 | 8.21% | 24,977 @ $15.01 (exp. 5/7/2028); 28,044 @ $14.05 (exp. 5/6/2029) | — | 289,855 (2022 PSU target); 733,944 (2023 PSU max est.) |
| March 14, 2025 | 25,670,306 | 8.19% | 24,977; 28,044 (same strikes/expirations) | 370,370 (2024 RSUs) | 666,667 (2024 PSU target); 733,944 (2023 PSU max) |
Ownership guidelines:
- Co‑CEOs required to hold 6x base salary; all NEOs compliant .
- No pledge disclosed for Chintu Patel; note that Chirag Patel pledged 21,269,420 shares to Credit Suisse under a 2021 agreement (potential governance risk for the company) .
Potential equity acceleration at termination/change-in-control (illustrative, as of 12/31/2024):
- For Chintu Patel: PSUs valued at $13,044,141 in all scenarios shown; RSU acceleration of $2,900,330 upon change‑in‑control (values at $7.92 stock price) .
Employment Terms
- Severance: Co‑CEOs do not participate in the Severance Plan and have no disclosed individual employment agreements with severance terms; equity awards may accelerate per award agreements .
- Non‑compete/non‑solicit: Not applicable for Chintu given no disclosed employment agreement; standard confidentiality/non‑solicit provisions apply to other executives (e.g., Daly, Konidaris, Shah, Boyer) .
- Director compensation: As an employee director, receives no separate pay for Board service .
Board Governance
- Board service: Director since August 2019; no committee memberships; Board held seven meetings in fiscal 2024; all directors attended ≥75% .
- Leadership/independence: Independent Chairman (Paul Meister); Board committees (Audit, Compensation, Nominating & Governance, Conflicts) comprised entirely of independent directors .
- Controlled company: Amneal Group controls majority voting power; company elects not to use Nasdaq controlled‑company exemptions; Amneal Group has consent/nomination rights and committee representation rights under Stockholders Agreement .
- Dual‑role implications: Co‑CEO + Director with independent Chair and Conflicts Committee mitigates independence concerns; nonetheless, related‑party oversight remains critical (see below) .
Compensation Committee Analysis
- Committee: Ted Nark (Chair), Jeff George, Paul Meister, Shlomo Yanai; independent and non‑employee per SEC/Nasdaq rules .
- Consultant: Meridian Compensation Partners engaged since 2022; assessed as independent .
- Peer group: 2024 peer group includes Alkermes, Organon, Viatris, Teva, Perrigo, etc.; Committee does not target specific percentile; 2024 Co‑CEO stock award targeted ~$5.6M each, approximating peer median of CEO + second‑highest paid NEO benchmarking .
Related Party Transactions
- Kanan, LLC (real estate): Amneal leases NJ facilities; rent ~$2.4M in 2024; Chintu and Chirag (via trusts) own ~28% aggregate and serve on Kanan’s Board of Managers .
- Kashiv Biosciences: Multiple development, license, and commercialization deals for biosimilars/505(b)(2); 2024 payments include $10M upfront + $10M development milestone for omalizumab; amended license added $14.5M potential milestones; total payments to Kashiv in 2024 ~$16.1M; Chirag and Chintu (with family trusts) own 50% of Kashiv and serve on its Board of Managers .
- Avtar Investments/Enterprise: Consulting services for clinical/regulatory advice; 2024 expenses ~$0.3M; ownership interests by Chirag and Chintu .
- Family employment: Kanubhai Patel (father) compensation ~$446,935 in 2024 + 2025 LTIP $225,000; Bindu Patel (sister) compensation ~$162,810 in 2024 .
Say‑on‑Pay & Shareholder Feedback
- 2023 say‑on‑pay approval: 98.4% .
- 2024 (for 2024 compensation) say‑on‑pay approval in 2025 Proxy: 99.5% .
Performance & Track Record
- 2024 execution: 22 launches in Affordable Medicines, expanding biosimilars pipeline to five, approvals for 505(b)(2) injectables, specialty launches including CREXONT; double‑digit revenue growth across segments and continued deleveraging (net leverage 3.9x) .
- 2023 execution: 39 generics launches, commercialization of first three biosimilars, specialty growth (RYTARY, UNITHROID, ONGENTYS), international expansion; net leverage 4.8x .
Risk Indicators & Red Flags
- Controlled company with Amneal Group consent rights; heightened need for Conflicts Committee rigor .
- Extensive related‑party dealings (Kashiv, Kanan, Avtar); quantitative magnitudes disclosed (see above) .
- Pledging: Chirag Patel pledged 21,269,420 shares; no pledge disclosed for Chintu Patel .
- Legal overhang: significant 2024 charges related to nationwide opioid litigation settlement in principle (company‑level risk) .
Compensation Structure Analysis
- Shift in equity mix: Co‑CEOs received all‑PSU awards in 2023 (target $1.2M; actual fair value ~$0.664M each using 2022 average pricing); 2024 awards increased to ~$5.6M each split ~64% PSUs/36% RSUs, aligning with peer median .
- Base salary changes: Co‑CEOs increased to $800k in 2024 after three years static .
- AIP continues to use adjusted EBITDA with defined thresholds and capped multipliers; Committee used limited discretion (e.g., 2023 +$12M adjustment; 2024 rounded multiplier) .
Equity Ownership & Alignment – Additional Detail
| Element | Detail |
|---|---|
| Stock ownership guideline | Co‑CEOs: 6x base salary; compliant . |
| Hedging/pledging | Hedging prohibited; pledging prohibited for non‑Amneal Group directors/executives; no pledge disclosed for Chintu; Chirag pledge disclosed . |
| Options status | Legacy options deep out‑of‑the‑money at $14–$15 strikes; expirations 2028/2029 . |
| 2022 PSUs | Vested at target following 3/1/2022–2/28/2025 period; may create taxable events . |
Investment Implications
- Pay‑for‑performance alignment: AIP tied to adjusted EBITDA (core operating measure) and LTIs tied to multi‑year stock price growth, with a meaningful increase in at‑risk equity for Co‑CEOs in 2024 and continued high say‑on‑pay support—constructive for alignment and momentum investors .
- Potential near‑term selling pressure: 2022 PSU vesting in early 2025 adds share supply from vesting; monitor Form 4s for tax‑related dispositions and any 10b5‑1 plans (data not in proxy; requires ongoing insider monitoring) .
- Governance/watch‑items: Controlled company structure and material related‑party transactions necessitate confidence in Conflicts Committee oversight; no Chintu pledge disclosed, but Chirag’s pledge is a corporate‑level risk factor to track .
- Retention/transition risk: Lack of severance/CIC cash protections for Co‑CEOs means retention is driven by equity value creation and significant ownership stakes; equity acceleration exists under CIC for unvested awards, but no guaranteed severance multiples—aligns incentives with shareholder outcomes .