Les Funtleyder
Interim Chief Executive Officer and Chief Financial Officer at 
Applied Therapeutics
Applied TherapeuticsCEO
Executive
Board
About Les Funtleyder
Les Funtleyder, 55, is Interim Chief Executive Officer, Chief Financial Officer, and a Class I director at Applied Therapeutics (APLT). He has served on the board since June 2016, became CFO in November 2023, and was appointed Interim CEO in December 2024. He holds a B.A. from Tulane University and an MPH from Columbia University Mailman School of Public Health. Company performance context: 2024 TSR value of an initial $100 investment was $112.66 and 2023 was $440.79; net income was $(105,600) thousand in 2024 and $(119,763) thousand in 2023 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| E Squared Capital Management, LLC | Healthcare Portfolio Manager (on sabbatical) | Since Jan 2014 | Public markets investing experience aligns incentives and capital markets expertise |
| McKinsey & Co. | Senior External Advisor | Since Jun 2017 | Strategic advisory background enhances execution discipline |
| BlueCloud Health (PE fund) | Consulting Partner | Dec 2013 – Apr 2020 | Private equity and healthcare operations perspective |
| OPKO Health (Nasdaq: OPK) | Director of Strategic Investments & Communications | Not disclosed | Strategic investments, IR/communications exposure |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Reviva Pharmaceuticals Holdings, Inc. (Nasdaq: RVPH) | Director | Not disclosed | Cross-company board exposure enhances industry network |
| Several private healthcare companies and foundations | Director | Not disclosed | Broader healthcare governance experience |
| Columbia University Medical Center | Adjunct Professor | Not disclosed | Academic ties support clinical rigor |
| Columbia University School of Public Health | Adjunct Professor of healthcare investors | Not disclosed | Curriculum and investor education perspective |
Fixed Compensation
| Component | 2024/2025 Terms | Amount |
|---|---|---|
| Base Salary | Annual | $525,000 |
| Interim CEO Monthly Supplement | For each month serving as Interim CEO (began Dec 19, 2024) | $15,000 per month |
| Target Annual Bonus (2025) | Up to 50% of base plus Interim CEO supplemental earned in 2025 | % target only; amount depends on 2025 service |
| Actual Annual Bonus (2024) | Discretionary; Compensation Committee awarded 80% of 2024 target | $225,600 |
| All Other Compensation (2024) | Primarily 401(k) match | $12,621 |
Performance Compensation
| Incentive Type | Metric/Trigger | Weighting | Target | Actual/Payout | Vesting/Timing |
|---|---|---|---|---|---|
| Special Cash Bonus | FDA approval of company’s SDH program or Change-in-Control | N/A | $525,000 | $525,000 (upon trigger) | Upon FDA approval or COC event |
| Annual Cash Bonus (2024) | Discretionary performance (company/individual) | N/A | Target set by Compensation Committee | 80% of target awarded; paid $225,600 | Annual review; paid Feb 2025 |
| RSUs (Supplemental) | Time-based | N/A | 150,000 units | N/A | 12 equal monthly installments post grant; continued employment required |
| Stock Options (Supplemental) | Time-based | N/A | 150,000 options | N/A | 12 equal monthly installments post grant; continued employment required |
| Additional Equity Grants | Continued Interim CEO service | N/A | Quarterly awards starting Apr 1, 2025 if still Interim CEO | N/A | Granted on the first day of each subsequent calendar quarter while serving |
Equity Ownership & Alignment
| Item | Amount | Details/Notes |
|---|---|---|
| Total Beneficial Ownership | 452,503 shares | Includes options exercisable within 60 days and near-term RSU vesting |
| Ownership % of Outstanding | ~0.32% | 452,503 / 141,575,526 shares outstanding; company discloses “<1%” |
| Options Exercisable ≤60 days | 191,692 shares | Included in beneficial ownership; boosts near-term liquidity potential |
| RSUs Vesting ≤60 days | 50,000 units | Included in beneficial ownership |
| Hedging/Pledging | Prohibited | No hedging, margin accounts, or pledging permitted by policy |
| 10b5-1 Trading Plans | Permitted | Allowed under policy subject to rules; can mitigate MNPI risk |
| Clawback Policy | In place | Applies to incentive compensation upon required restatement |
Outstanding Equity Awards (as of Dec 31, 2024)
| Award Type | Grant Date | Unvested/Outstanding | Terms |
|---|---|---|---|
| RSUs | 11/20/2023 | 137,500 unvested; $118,250 market value | Vests monthly in 1/24th increments over 2 years |
| Options | 12/19/2024 | 150,000 unexercised (unexercisable portion subject to schedule) | $1.02 strike; expires 12/19/2034 |
| RSUs | 12/19/2024 | 150,000 unvested; $129,000 market value | Vests in 12 equal monthly installments |
Employment Terms
| Provision | Term |
|---|---|
| Employment Status | At-will; Funtleyder Offer Letter Nov 2023, amended Dec 2024 for Interim CEO |
| Severance (without cause or resignation for good reason) | 12 months base salary; company-paid healthcare up to 12 months; payment of target annual bonus for year of termination; full vesting of any then‑unvested equity awards (subject to release) |
| Change-in-Control Treatment (Plan-level) | All equity awards granted under the 2019 Equity Incentive Plan become fully vested upon a change in control |
| Special Cash Bonus | $525,000 payable upon FDA approval or Change-in-Control |
| Restrictive Covenants | Subject to standard Employee Confidential Information, Inventions, Non‑Solicitation and Non‑Competition Agreement (terms not specified in proxy) |
| Expense Reimbursement | Reasonable T&E in connection with duties |
Board Governance
- Board service history and independence: Class I director; term expires 2026; the board determined Mr. Funtleyder is not independent under SEC and Nasdaq rules. Dual role as Interim CEO + CFO + Director raises independence concerns for board oversight .
- Committee roles: Not listed as a member of Audit, Compensation, or Nominating & Corporate Governance committees; current committee chairs are independent directors (Audit: Kanter; Compensation and Nominating: Skyler). Lead Independent Director is Dr. Teena Lerner .
- Attendance: Board held 12 meetings in 2024; all incumbent directors attended at least 90% of meetings and their committee meetings .
- Director pay: Executives (Johnson, Funtleyder) did not receive additional compensation for board service in 2024; non‑employee director cash retainers were Board $40,000, Audit $10,000 (Chair +$20,000), Compensation $7,500 (Chair +$15,000), Nominating $5,000 (Chair +$10,000) .
Compensation Committee Analysis
- Composition: Independent directors; chaired by Dr. Jay Skyler; Aon Radford serves as independent compensation consultant to the committee .
- Design: Program includes base salary, discretionary annual bonuses, and long-term equity (RSUs, PSUs, options) with multi-year vesting. Equity awards under the 2019 Plan fully vest upon change-in-control .
- 2024 bonuses: Committee awarded Mr. Funtleyder 80% of his 2024 target bonus, paid in February 2025, reflecting holistic assessment of company and individual performance .
Investment Implications
- Alignment and ownership: Beneficial ownership is <1% (~0.32%), which limits personal capital-at-risk alignment versus executives with higher stakes; however, hedging and pledging prohibitions and a clawback policy support shareholder‑friendly risk management .
- Event-driven incentives: A $525,000 special cash bonus payable upon FDA approval or change-in-control, combined with full plan-level COC vesting, creates strong incentives around regulatory and strategic transactions; investors should monitor deal timing and regulatory milestones for potential compensation realizations .
- Near-term selling pressure: Monthly vesting of 12 equal installments for RSUs and options, plus additional quarterly equity grants while serving as Interim CEO, can introduce steady supply of tradable shares; Rule 10b5‑1 plans can mitigate MNPI risk but do not eliminate selling overhang .
- Retention risk mitigation: Severance includes salary continuation, healthcare, target bonus, and full vesting of unvested equity upon a qualifying termination, lowering near‑term retention risk but potentially reducing pay‑for‑performance sensitivity if termination occurs .
- Governance risk: Dual executive roles (Interim CEO + CFO) alongside board service, with non‑independent status, increases governance concentration; oversight is partially mitigated by an Executive Chairman, a Lead Independent Director, and independent committee chairs .