Scott Lish
Alphatec HoldingsAbout Scott Lish
Scott Lish, age 44, is Chief Operating Officer (COO) of Alphatec (ATEC) since January 2024, after serving as SVP R&D (Oct 2020–Jan 2024) and VP R&D (Oct 2017–Oct 2020). He previously held product development roles at NuVasive (2009–2017), most recently Director of Development for Thoracolumbar Fixation, and worked two years as a Manufacturing Engineer at Zimmer Dental. Lish holds an M.S. in Materials Science and a B.E. in Mechanical Engineering from Dartmouth’s Thayer School, and a B.A. in Engineering Sciences from Dartmouth College . During his tenure as an ATEC executive, the company reported 2024 revenue of $612 million (+27% YoY), >690 bps adjusted EBITDA margin improvement, and generated $9 million of Q4 2024 free cash flow; ATEC ranked ~90th percentile on 1-year and ~85th percentile on 3-year revenue growth vs. peers, with TSR percentile ranks of ~19% (1-year) and ~75% (3-year) as of 12/31/2024 .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Alphatec Holdings (ATEC) | Chief Operating Officer | Jan 2024–present | Operational leadership following rapid multi-year product and revenue growth; aligns R&D-to-commercial execution . |
| Alphatec Holdings (ATEC) | SVP, Research & Development | Oct 2020–Jan 2024 | Led pipeline and product innovation across spine portfolio; foundation for revenue growth and PRSU performance . |
| Alphatec Holdings (ATEC) | VP, Research & Development | Oct 2017–Oct 2020 | Built R&D organization post leadership transition; accelerated product development cadence . |
| NuVasive, Inc. | Director, Development (Thoracolumbar Fixation) | 2009–2017 | Led product development in core fixation segment; deep spine technical expertise . |
| Zimmer Dental | Manufacturing Engineer | ~2 years (pre-2009) | Engineering/manufacturing rigor in MedTech operations . |
Fixed Compensation
| Metric | 2023 | 2024 | 2025 (current) |
|---|---|---|---|
| Base salary ($) | 380,000 | 425,000 (effective Feb 1, 2024) | 503,000 (approved Jan 29, 2025) |
| Target annual cash bonus (% of base) | 70% | 70% (plan); table later references 50% for payout calc | 70% |
Performance Compensation
2024 Annual Short-Term Incentive Plan (company-wide)
| Metric | Weighting | Target definition | Actual payout vs. target | Weighted payout |
|---|---|---|---|---|
| Revenue | 75% | Global revenue (audited) | 102% | 76% |
| Adjusted EBITDA | 25% | Adjusted EBITDA, pre-bonus, excluding specified items | 114% | 29% |
| Aggregated payout | — | — | 105% | 105% |
2024 Lish Bonus Outcome and Form of Payment
| Item | Value |
|---|---|
| Target bonus opportunity | $297,500 (70% of $425,000) |
| Actual payout (% of target) | 111% |
| Actual bonus ($) | $330,000 |
| Paid in cash | $165,000 |
| Paid in RSUs | 19,900 RSUs (50% of bonus / $9.95 30D avg, ×1.2 factor) |
| Vesting (bonus RSUs) | Vests in full on Dec 5, 2025; accelerated upon certain terminations and change in control |
2024 Long-Term Incentive Awards (granted Feb 2024)
| Award type | Target units | Earned units | Earn rate vs. target | Vesting schedule |
|---|---|---|---|---|
| Global Revenue Growth PRSUs | 95,238 | 120,952 | 127% (on 27% YoY revenue; 107% performance) | 1/3 on Mar 5, 2025; 1/3 on Mar 5, 2026; 1/3 on Mar 5, 2027 |
| RSUs (time-based) | 31,746 | N/A | N/A | 1/3 each on 1st, 2nd, 3rd anniversaries of grant |
Salary-to-Equity Conversion Program (2025)
| Item | Terms |
|---|---|
| Program adoption | Mar 31, 2025 |
| Cash salary reduction | 10%–50% replaced with RSUs (for certain executives) |
| Vesting (conversion RSUs) | Two equal tranches: Aug 5, 2025 and Dec 5, 2025, subject to continued employment |
Stock Options (legacy)
| Item | Status |
|---|---|
| Options exercisable | 38,500 shares (vested) |
| Strike, expiration | Not disclosed for Lish; company option/warrant schedules summarized separately |
Performance Metric Design
- PRSU matrix ties 1-year global revenue growth to earn-out (0x at ≤20%, 1.0x at 25%, 2.5x at ≥35%; linear interpolate) with subsequent 3-year time vesting; RSUs time-vest over three years .
- 2024 STIP metrics: 75% revenue, 25% adjusted EBITDA; payout matrix with discretionary individual modifiers ± up to 50% / −100% .
Equity Ownership & Alignment
| Ownership measure | Value |
|---|---|
| Total beneficial ownership | 413,260 shares |
| % of shares outstanding | <1% (denoted “*”) |
| Components disclosed | Includes 38,500 shares issuable upon exercise of vested options |
| Stock ownership guidelines | Section 16 officers: 1.0x base salary; counts shares/RSUs, excludes options and unearned PRSUs; 5-year compliance window |
| Hedging/pledging | Prohibited (short sales, margin pledging, collars/derivatives; options on ATEC stock) |
| Clawback | Exchange Act Rule 10D-1/Nasdaq-compliant; recovery of excess incentive comp after material restatement; effective Dec 1, 2023 |
Employment Terms
- Employment status: At-will; initial letter dated Oct 13, 2017; current base $503,000, target bonus 70% of base; full participation in management benefits and expense reimbursement .
- Severance (without cause): Lump sum equals the greater of (i) 1× regular annual target compensation (base + target bonus), or (ii) average annual total cash comp over prior 3 years; 18 months COBRA premiums; extended post-termination option exercise window to the later of 90 days or remaining term on vested options; subject to release .
- Change-in-control (double-trigger): If terminated without cause or for good reason within 24 months post-CIC, lump sum equals (x) 1× annual compensation; plus (y) prorated portion (up to 6 months) of highest grant-date fair value of any long-term incentive (cash/equity) granted in the prior 3 calendar years; plus (z) prorated portion of the greater of current-year target bonus or highest bonus in prior 3 years; 18 months COBRA; full vesting of time-based equity; subject to release; standard 280G cut-down (no excise tax gross-up) .
- Policies: Insider trading restrictions (speculative transactions restricted); compensation recovery policy; compensation administered by independent Compensation Committee .
Compensation Structure Analysis
- Mix shifts emphasize equity and at-risk pay: 2024 PRSUs and RSUs comprise the majority of total direct compensation; annual bonus paid 50% in RSUs (with a 1.2x equity conversion factor), increasing equity-linked retention and alignment .
- Clear pay-for-performance: 2024 STIP funded by revenue and adjusted EBITDA against aggressive targets; PRSU earn-out (127%) tied to 27% revenue growth, with multi-year vesting to reinforce retention .
- Governance safeguards: Double-trigger CIC severance (no tax gross-ups), robust clawback, anti-hedging/pledging, independent advisor (Compensia) to Compensation Committee .
- Shareholder support: Say-on-pay approval ~85% (2024) indicates investor acceptance of program design .
Investment Implications
- Alignment: High equity intensity, PRSU revenue-growth linkage, bonus-to-RSU conversion, and stock ownership guidelines create strong alignment with long-term value creation and retention; anti-hedging/pledging reduces misalignment risk .
- Vesting-driven flow dynamics: Notable vesting dates (PRSU tranches on Mar 5, 2025/2026/2027; bonus RSUs on Dec 5, 2025; salary-conversion RSUs on Aug 5 and Dec 5, 2025) may influence Form 4 activity and potential selling pressure patterns around vest dates, even with strong retention mechanics .
- Downside protection/retention: Double-trigger CIC cash severance, equity acceleration of time-based awards, and extended option exercise windows reduce forced selling and aid executive retention through strategic cycles .
- Execution track record: Lish’s R&D-to-COO progression coincides with significant operational and financial momentum (2024 revenue +27% YoY, adjusted EBITDA margin +690 bps), supporting confidence in operational execution; TSR percentile suggests market recognition improved more on multi-year horizon than 1-year period .
- Governance risk is contained: No gross-ups, explicit clawback, strong committee independence, and positive say-on-pay outcome mitigate governance red flags .