Latha Vairavan
About Latha Vairavan
Senior Vice President and Chief Financial Officer of Arcutis Biotherapeutics (appointed April 10, 2025), age 47, with 20+ years of finance and accounting experience in biotech; joined Arcutis in March 2020 after 12 years at Amgen, and earlier roles at KPMG and Arthur Andersen; B.S. in Business Administration (Finance) from USC and a licensed CPA in California . Company performance heading into her tenure showed rapid revenue scaling from FY 2022 to FY 2024 and improving EBITDA losses; 2024 total shareholder return (company TSR index from IPO base) was 63.90 versus peer group 120.60 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Arcutis Biotherapeutics | VP Finance & Investor Relations; Executive Director, FP&A; VP Finance & Corporate Controller | March 2020–April 2025 | Built FP&A and IR, oversaw accounting/compliance ahead of CFO transition |
| Amgen Inc. | Finance roles culminating as Finance Director, US Value & Access | 12 years | Market access finance leadership in large-cap biopharma |
| KPMG; Arthur Andersen | Financial consultant | Not disclosed | Early-career audit/consulting foundation |
External Roles
No public company directorships or external board roles disclosed for Vairavan .
Fixed Compensation
| Component | 2025 Value | Notes |
|---|---|---|
| Base Salary | $450,000 | Increased upon CFO appointment (effective immediately prior to Q1 2025 10‑Q filing) |
| Target Annual Bonus | 45% of base salary | Subject to achievement of performance goals; pro-rated for 2025 |
| Maximum Annual Bonus | 67.5% of base salary | Pro-rated for 2025 |
Performance Compensation
Equity Awards (2025 CFO grants)
| Grant/Reference Date | Instrument | Shares | Vesting | Other Terms |
|---|---|---|---|---|
| Upon CFO appointment (anniversary dates tied to May 1, 2025) | Stock Options | 60,000 | 2.0833% monthly (time-based), subject to continued service | Exercise price not disclosed |
| Upon CFO appointment (anniversary dates tied to May 1, 2025) | RSUs | 20,000 | 25% on each anniversary of May 1, 2025 (4-year schedule), subject to continued service | Time-based RSUs |
Annual Bonus Framework
| Metric | Weighting | Target | Actual | Payout | Vesting/Timing |
|---|---|---|---|---|---|
| Board-approved annual corporate performance goals | Not disclosed | Not disclosed | Company determines annual corporate achievement score; CFO bonus based entirely on corporate performance | Up to 45% target (67.5% max), pro-rated for 2025 | Paid post-year end after Board approval of corporate score |
Equity Ownership & Alignment
| Item | Status | Source |
|---|---|---|
| Beneficial ownership (shares and %) | Not disclosed for Vairavan in 2025 proxy ownership table (table lists NEOs and directors as of April 15, 2025; she was appointed CFO April 10, 2025 and is not listed among NEOs) | |
| Stock ownership guidelines | Policy applies to senior executives and directors; multiples not disclosed | |
| Hedging/pledging | Prohibited (no pledging, hedging, or monetization transactions; no margin pledges without compliance approval) | |
| Clawback policy | Complies with Section 10D and Nasdaq; recovery of incentive comp upon required restatement | |
| Form 4 activity since appointment | No Form 4 filings found in tool search to date (searched ARQT Form 4, none returned) |
Employment Terms
| Trigger | Cash Severance | Bonus Severance | COBRA | Equity Vesting | Other Terms |
|---|---|---|---|---|---|
| Termination without Cause or resignation for Good Reason (outside CIC period) | 9 months base salary | None disclosed | 9 months of COBRA premium payments or cash equivalent (with initial lump-sum catch-up) | No acceleration specified outside CIC | Requires timely general release; continued compliance; California law |
| Termination without Cause or resignation for Good Reason during CIC period (3 months pre‑CIC to 18 months post‑CIC) | 12 months base salary (higher of pre‑termination or CIC) | 1.0x target annual bonus for the then-current year | 12 months of COBRA premium payments or cash equivalent (with initial lump-sum catch-up) | 100% acceleration of unvested time-based equity; performance awards vest at greater of target or determinable actual; special timing conditions if termination pre‑CIC; non-assumption triggers immediate acceleration pre‑CIC | |
| Excise tax (280G/4999) | “Best after-tax” modified cutback; potential repayment if IRS determines excise tax due | ||||
| Good Reason definition | Material diminution of salary/target bonus; duties/responsibilities; relocation >50 miles; notice/cure periods apply | ||||
| Dispute resolution | Binding arbitration (JAMS), Los Angeles County; FAA governs; California law otherwise | ||||
| Indemnification | Standard D&O indemnification agreement | ||||
| Double‑trigger design | CIC benefits require both change in control and qualifying termination (company-wide design) |
Performance & Track Record
- SOX certifications: Signed Q3 2025 SOX 302 and Section 906 certifications as CFO, indicating responsibility for disclosure controls and fair presentation of financials .
- SEC filings/signing authority: Signed Q3 2025 8‑K press release and 10‑Q signatures as CFO .
- Strategic commentary: Emphasizes responsible, uniform pricing for ZORYVE across indications; evaluates external innovation with selective BD focus (validated targets, phase 2 sweet spot) and synergy considerations; lifecycle management exploring HS and vitiligo proof‑of‑concept .
- Related party/transactions: No Item 404 related party transactions involving Vairavan disclosed; company notes no such transactions requiring disclosure .
- Company TSR context: Company’s “Value of $100” TSR index at YE 2024 was 63.90 vs peer group 120.60, reflecting volatility through commercialization ramp .
Company Performance During Pre‑CFO Years
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Revenues ($) | $3,686,000 | $29,186,000 | $166,542,000 |
| EBITDA ($) | $(300,693,000)* | $(239,580,000)* | $(125,798,000)* |
Values retrieved from S&P Global.*
Investment Implications
- Compensation alignment: Time‑based options (monthly vesting) and RSUs (annual tranches) create sustained alignment and retention; annual cash bonus depends entirely on Board‑approved corporate performance goals, reinforcing pay‑for‑performance .
- Retention and change‑of‑control: Double‑trigger severance with full equity acceleration only upon CIC plus qualifying termination, plus “best after‑tax” cutback, balances retention with shareholder protection; arbitration and California law terms standard for biotech executives .
- Trading signals: No Form 4 activity observed since appointment; hedging/pledging prohibitions reduce misalignment risk; monthly option vesting may create periodic liquidity opportunities, warranting monitoring of any future Form 4s .
- Execution risk: Vairavan’s SOX certifications and pricing/BD commentary indicate control rigor and disciplined capital allocation; commercialization momentum and revenue scaling into 2024 frame her tenure against improving EBITDA trends, but TSR volatility underscores ongoing execution and market adoption risks .