Christopher Sullivan
About Christopher Sullivan
Christopher Sullivan, 41, is Chief Financial Officer of Avalo Therapeutics (AVTX) and has served as CFO since February 2022 after prior roles as Interim CFO (2020–2021), Chief Accounting Officer (2021), and Vice President of Finance since joining Avalo in April 2018. He is a CPA with prior experience as Corporate Controller at Sucampo and OpGen and Senior Manager at Ernst & Young; he holds B.S. degrees in Finance and Accounting from the University of Maryland, College Park, magna cum laude . During his tenure, Avalo’s Pay vs Performance disclosure shows continued net losses ($35.1M in 2024; $31.5M in 2023) and a deeply negative TSR profile (SEC-required “$100 initial investment” value measured at $0 in 2023–2024), underscoring a challenging equity performance backdrop .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Avalo Therapeutics (AVTX) | Chief Financial Officer | Feb 2022–present | Led finance during pipeline repositioning (AVTX‑009), capital raises, and transactional execution; extensive capital markets and BD support . |
| Avalo Therapeutics (AVTX) | Interim CFO (PFO/PAO) | Apr 2020–Feb 2021 | Bridged finance leadership; oversaw reporting and controls during transition . |
| Avalo Therapeutics (AVTX) | Chief Accounting Officer | Mar 2021–Feb 2022 | Strengthened accounting/reporting; ERP and FP&A leadership . |
| Avalo Therapeutics (AVTX) | VP Finance and prior roles | Apr 2018–2020 | Built finance operations through multiple transactions . |
| Sucampo Pharmaceuticals | Corporate Controller | Aug 2017–Apr 2018 | Contributed through $1.2B sale to Mallinckrodt . |
| OpGen (OPGN) | Corporate Controller | Nov 2015–Aug 2017 | Public company reporting and controls . |
| Ernst & Young LLP | Senior Manager | Aug 2005–Oct 2015 | Audit/assurance foundation; capital markets readiness . |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| — | — | — | No public company directorships or external board roles disclosed . |
Fixed Compensation
| Metric | 2023 | 2024 |
|---|---|---|
| Base Salary (reported SCT, $) | $350,000 | $400,000 (pro-rated; base increased mid-year) |
| Base Salary Program Detail | $350,000 | Increased to $450,000 effective June 30, 2024 |
Notes:
- 2024 base salary program level was $450,000 effective June 30, 2024; the Summary Compensation Table (SCT) reflects actual paid salary of $400,000 for 2024 .
Performance Compensation
| Component | Target | Actual/Payout | Metric Framework | Vesting/Timing |
|---|---|---|---|---|
| Annual Bonus (Cash/Equity at election) | Up to 40% of base salary | 2024: $229,400; 2023: $84,000 (2024 includes a $35,000 retention bonus) | Discretionary vs. Company/individual goals; Committee/Board judgment; company notes metrics “tend not to be financial measures such as TSR” | Typically paid the year after earned; immediate vesting if elected as equity per agreement . |
| Retention Bonus | — | $35,000 paid Feb 2024 | One-time retention support | Paid in 2024 . |
Equity incentive awards granted in 2024:
- Stock Options: 186,700 options granted 8/13/2024 at $9.88 strike; term to 8/13/2034; vest 25% on March 28, 2025, then monthly over 36 months (service-based) .
- RSUs: 72,600 RSUs granted 8/13/2024; vest one-third on March 28 of 2025, 2026, 2027 (service-based) .
Multi‑Year Compensation Summary (SCT)
| Component ($) | 2023 | 2024 |
|---|---|---|
| Salary | $350,000 | $400,000 |
| Non‑Equity Incentive (incl. retention in 2024) | $84,000 | $229,400 |
| Option Awards (Grant‑date fair value) | $173,645 | $1,587,846 |
| Stock Awards (Grant‑date fair value) | — | $712,288 |
| All Other Compensation | — | — |
| Total | $607,645 | $2,929,534 |
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Total Beneficial Ownership | 71,984 shares beneficially owned (less than 1% of 10,827,620 shares outstanding as of Apr 22, 2025) . |
| Composition | 16,921 shares owned directly; 55,063 options exercisable within 60 days of Apr 22, 2025 . |
| Vested vs. Unvested (12/31/2024 snapshot) | Significant legacy options exercisable; 186,700 unexercisable options from 8/13/2024 grant; 72,600 unvested RSUs vesting 2025–2027 . |
| Ownership Guidelines | Not disclosed . |
| Hedging/Pledging | Insider Trading Policy “strongly discourages” short sales, options, hedging transactions, and margin accounts (which can imply pledging/margin risks are discouraged) . |
| In‑the‑money value | Not disclosed; cannot be determined from filings without current market price . |
Vesting‑linked supply considerations
- 2024 grants have service‑based vesting starting March 28, 2025 (25% cliff for options; 1/3 for RSUs), then monthly or annual installments through 2027, potentially adding periodic liquidity windows subject to trading policy and blackout periods .
Employment Terms
| Term | Detail |
|---|---|
| Current Agreement | Sullivan Letter Agreement dated Feb 18, 2022 amending prior agreements (2019, 2020) . |
| Target Bonus | Up to 40% of base salary; may elect cash or immediately vested equity . |
| Initial Equity/Bonus at CFO Appointment | One‑time appointment bonus of $50,000; option grant on 3/8/2022 for 140 shares, 4‑year vesting with 12‑month cliff then monthly . |
| Non‑Compete/Non‑Solicit | Non‑compete 6 months post‑employment; non‑solicit 12 months; perpetual confidentiality . |
| Severance (No Cause/Good Reason) | Accrued benefits; prior‑year earned unpaid bonus; 12 months salary continuation; pro‑rated current‑year bonus; full vesting of options and 12 months to exercise; up to 12 months COBRA premium payments (release required) . |
| Change‑of‑Control (CoC) | If termination without cause occurs within six months of a CoC, payments in clauses (i)-(iii) are made promptly after the CoC closing or termination; base severance terms otherwise as above (no higher multiple disclosed) . |
| Clawback/Tax Gross‑Ups | No specific clawback policy or tax gross‑ups disclosed for Sullivan in the proxy . |
Performance & Track Record
| Measure | 2022 | 2023 | 2024 |
|---|---|---|---|
| Net Loss ($000s) | $(41,658) | $(31,544) | $(35,129) |
| Value of $100 Investment (TSR) | $25 | $0 | $0 |
- Commentary (from Pay vs. Performance): Compensation “actually paid” is not directly correlated with TSR; the company uses several performance measures that “tend not to be financial performance measures, such as TSR.” Award values are influenced by grant timing/vesting and share price volatility .
Compensation Structure Analysis
- Mix shift and at‑risk pay: 2024 shows a step‑up in equity compensation (options and RSUs) versus 2023, increasing at‑risk, equity‑linked pay and retention hooks via multi‑year vesting schedules .
- Shift to RSUs: Introduction of RSUs in 2024 adds lower‑risk equity versus options, reducing performance gearing but strengthening retention; RSUs vest ratably through 2027 .
- Discretion in bonuses: Annual bonus is discretionary and not formulaic; company notes metrics are not primarily financial (TSR) which may weaken pay‑for‑performance alignment transparency despite Committee oversight .
- Repricing/Modifications: No option repricing or modifications disclosed; 2023 reverse stock split mechanically adjusted prior grants per plan terms (not a repricing) .
Related Party Transactions
- None disclosed relating specifically to Christopher Sullivan; employment agreement and equity awards are covered in Executive Compensation; broader related‑party transactions are disclosed separately (e.g., consulting arrangement with Northbrook for another executive) .
Say‑on‑Pay, Peer Group, and Governance
- Say‑on‑Pay: Advisory vote proposed; historical approval percentages not provided in the 2025 proxy .
- Compensation consultant/peer context: Aon Radford engaged in 2024 and 2025 to advise on competitiveness, design, and peer comparisons; detailed peer group constituents not disclosed .
- Insider policy: Policy strongly discourages hedging and margin activity, aligning with shareholder‑friendly practices on speculation and pledging risk .
Investment Implications
- Alignment and retention: Sullivan’s ownership is <1% with sizable time‑based equity from 2024 grants vesting through 2027, supporting retention but providing potential periodic selling capacity as tranches vest (subject to policy/blackouts) .
- Severance economics and acceleration: A relatively shareholder‑unfavorable feature is full option vesting upon a no‑cause/Good Reason termination even outside CoC; cash severance is moderate at 12 months salary plus pro‑rated bonus and COBRA, with no disclosed gross‑ups .
- Performance linkage: Bonus design remains discretionary with limited metric transparency and explicit acknowledgement that metrics are “not TSR,” which may dilute strict pay‑for‑performance optics amid negative TSR and ongoing net losses .
- Execution track record: Biography emphasizes capital markets and transaction experience (raises, M&A, licensing, ERP, FP&A), capabilities that are critical as AVTX advances AVTX‑009 through clinical milestones; however, equity holders have experienced severe TSR drawdowns through 2024–2025, framing a high bar for future value creation .