John Vavricka
About John Vavricka
John Vavricka is Chief Commercial Officer of Atea Pharmaceuticals (AVIR), serving since October 2018; he is 61 years old and holds a BS from Northwestern University . He previously founded and led Iroko Pharmaceuticals, Inc. (CEO/President, 2007–2015) and served as CEO of Biothea Pharma, Inc. (2015–2021), bringing commercial strategy and lifecycle management experience in biopharma . Company performance context: Atea’s cumulative TSR (from IPO base) translated a fixed $100 investment to $11.04 by year-end 2024, while peer NASDAQ Biotechnology Index stood at $108.72; 2024 net income was a loss of $168 million, underscoring pre-commercial cash burn typical of late-stage biotech .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Atea Pharmaceuticals, Inc. | Chief Commercial Officer | Oct 2018–present | Leads commercialization planning for antiviral portfolio; supports payer/prescriber market development and lifecycle strategy in HCV/COVID programs |
| Biothea Pharma, Inc. | Chief Executive Officer (co-founder) | Mar 2015–Jun 2021 | Built and led a development-stage biopharma; CEO role overlapped with early Atea tenure |
| Iroko Pharmaceuticals, Inc. | Founder, CEO & President | 2007–2015 | Founded specialty pharma; drove portfolio commercialization and corporate strategy |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| Biothea Pharma, Inc. | CEO | 2015–2021 | External operating role alongside early Atea tenure |
| Iroko Pharmaceuticals, Inc. | Founder/CEO/President | 2007–2015 | External operating role prior to Atea |
Fixed Compensation
| Component | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary ($) | 397,838 | 417,729 | 430,261 |
| Target Bonus % of Salary | — | — | 40% |
| Target Bonus ($) | 171,070 | 146,205 | 172,104 |
| Actual Bonus Paid ($) | 171,070 | 146,205 | 137,684 (80% of target; paid Feb 2025) |
Performance Compensation
Annual Performance-Based Cash Incentive – 2024 Corporate Goals
| Metric | Weight | Target | Actual Assessment | Payout Contribution |
|---|---|---|---|---|
| HCV program milestones (Phase 2 SVR12/safety; End-of-Phase 2; FDC selection; initiate Phase 3; DDI/resistance work; CMC; market research) | 40% | Preset operational milestones | Met Target | 40% |
| COVID-19 program (SUNRISE-3 enroll; topline; clinical pharm; CMC; market analyses) | 40% | Preset operational milestones | Partial Achievement | 20% |
| Protease inhibitor IND-enabling activities | 5% | Preset operational milestones | Met Target | 5% |
| Corporate (fiscal discipline, reporting, staffing alignment, investor messaging) | 15% | Preset operational milestones | Met Target | 15% |
| Total | 100% | — | — | 80% Company rating; 80% of target bonus paid to NEOs |
2024 Equity Grants (Award Mix and Vesting)
| Instrument | Grant Date | Shares/Units | Exercise Price | Grant-Date Fair Value ($) | Vesting |
|---|---|---|---|---|---|
| PSUs (at target) | 01-31-2024 | 95,700 | — | 398,112 | Three-year performance period through Jan 2027; vest based on clinical/regulatory milestones; cliff-vest when goals certified |
| Stock Options | 01-31-2024 | 132,800 | 4.16 | 406,806 | Vest 1/48 monthly over 4 years; value realized only if stock appreciates above strike |
PSUs rationale: enhance long-term pay-for-performance alignment using multi-year R&D milestones; options deliver value only with stock price appreciation .
Equity Ownership & Alignment
| Ownership Detail | As of/Date | Amount | Notes |
|---|---|---|---|
| Total beneficial ownership (shares) | 04-22-2025 | 891,387 | 1.0% of outstanding (85,579,475 shares O/S) |
| Direct + trust shares | 04-22-2025 | 134,589 (52,081 direct; 82,508 as Trustee of John F. Vavricka Deed of Trust) | Included in beneficial ownership |
| Options exercisable within 60 days | 04-22-2025 | 756,798 | Included in beneficial ownership % calc under SEC rules |
| RSUs outstanding (2023 grant) | 12-31-2024 | 66,666 | Vest in three equal annual installments |
| PSUs outstanding (2024 target) | 12-31-2024 | 95,700 | Performance vest by Jan 2027 |
| Anti-hedging/pledging | Policy | Prohibited for directors, officers and employees (incl. entities they control) | No pledging permitted; no margin accounts allowed |
| Ownership guidelines | — | — | Not disclosed |
Insider selling pressure indicators:
- No stock option exercises in 2024; 33,334 RSU shares vested for Vavricka in 2024 .
- As of 12-31-2024, unvested options were out-of-the-money versus $3.35 closing price; accelerated option vesting value excluded in CIC table because strikes exceeded market, limiting near-term exercise pressure .
Employment Terms
| Term | Base Case Severance | Change-in-Control (Double-Trigger) | Equity Treatment |
|---|---|---|---|
| Qualifying termination (without cause/with good reason) | 12 months base salary; prior year unpaid bonus; up to 12 months COBRA (company-paid portion) | 18 months base salary; prior year unpaid bonus; prorated current-year bonus; 1.5x target bonus; up to 18 months COBRA (company-paid portion) | Time-based awards (RSUs/options) accelerate 100% upon CIC+qualifying termination; PSUs have special CIC vest rule (see below) |
| PSUs CIC vesting | — | On CIC during performance period, vest at greater of target or actual (incl. reasonably likely milestones), subject to service through CIC | PSU vesting may occur at CIC without termination; options/RSUs require double-trigger for acceleration |
| Clawback policy | — | — | Company will recover incentive compensation (cash/equity) after accounting restatements per Nasdaq Rule 10D-1 (look-back 3 years) |
| 10b5-1 plan policy | — | — | Directors/officers may trade under Rule 10b5-1 plans; outside plans allowed if not in possession of MNPI and compliant with policy |
Illustrative potential payments (if terminated without cause/for good reason in 12 months post-CIC; assumes event on 12-31-2024):
- Total estimated: $1,758,084 comprising salary continuation $645,392; prorated bonus $172,104; incremental bonus 1.5x target $258,157; benefits $21,255; equity acceleration value $661,176 (PSUs at target and RSUs; excludes OTM options) .
Multi-Year Compensation Trend
| Year | Salary ($) | Stock Awards ($) | Option Awards ($) | Non-Equity Incentive ($) | All Other ($) | Total ($) |
|---|---|---|---|---|---|---|
| 2022 | 397,838 | 249,900 | 691,835 | 171,070 | 12,200 | 1,522,843 |
| 2023 | 417,729 | 463,000 | 475,524 | 146,205 | 13,200 | 1,515,658 |
| 2024 | 430,261 | 398,112 | 406,806 | 137,684 | 13,800 | 1,386,663 |
Related Policies, Benefits, and Other Disclosures
- Perquisites: None provided to NEOs in 2024 .
- Pension/SERP: None; no defined benefit plans in 2024 .
- Deferred Compensation: None; no non-qualified deferred comp plans in 2024 .
- Compensation risk review: Program not reasonably likely to have material adverse effect; mix and caps assessed annually .
- Peer group methodology: 2024 peer cohort used by Compensation Committee for market references; blended with Radford survey; no fixed benchmarking to percentiles disclosed .
Investment Implications
- Pay-for-performance alignment is credible: 2024 cash incentive paid strictly on preset operational goals at 80% achievement; long-term mix reintroduced PSUs with 3-year clinical/regulatory milestones and options that require stock appreciation, limiting windfall risk .
- Retention risk moderated by CIC economics: double-trigger acceleration for time-based awards and 1.5x bonus multiple provide downside protection; PSUs feature single-trigger vesting at CIC at least at target, potentially making strategic transactions more palatable while maintaining alignment via milestone achievement .
- Insider selling pressure appears contained near term: no option exercises in 2024 and many options OTM at year-end ($3.35 price vs higher strikes), reducing incentive to sell; RSU vesting is predictable and limited in size .
- Skin-in-the-game present: ~1.0% beneficial ownership supported by large exercisable option position; anti-hedging/anti-pledging policy strengthens alignment; however, lack of disclosed ownership guideline multiples leaves future ownership targets unclear .
- Execution risk remains tied to HCV/COVID milestones: compensation metrics emphasize pipeline progression; failure on clinical or regulatory timelines would lower cash payouts and PSU realizations, directly linking compensation to development outcomes .