Alexander Hardy
BIOMARIN PHARMACEUTICALAbout Alexander Hardy
Alexander Hardy, age 56, has served as BioMarin’s President and Chief Executive Officer and as a director since December 1, 2023. He brings more than 30 years of global biopharma leadership including CEO of Genentech, Head of Global Product Strategy at Roche, and Head of Asia Pacific for Roche Pharma; he holds a BA in Land Economy (Cambridge) and an MBA (Michigan Ross) . Under his leadership in 2024, BioMarin delivered record total revenues of $2.85 billion (+18% YoY) and Non-GAAP diluted EPS of $3.29; the company’s three-year relative TSR finished at the 71st percentile (capped at 100% payout due to negative absolute TSR) and core operating margin exceeded targets, evidencing strong performance against strategic and financial goals .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Genentech | Chief Executive Officer | 2019–2023 | Led major biopharma franchise with multi-indication portfolios; operational and commercial execution at scale |
| Roche | Head, Global Product Strategy | 2016–2019 | Oversaw lifecycle management and global commercial strategy across multiple therapeutic areas |
| Roche | Head, Asia Pacific, Roche Pharma | 2014–2016 | Regional P&L leadership and market expansion across Asia Pacific |
| Genentech; Novartis | Various leadership roles | Pre‑2014 | Product strategy, leadership and commercial roles in leading global pharma organizations |
External Roles
| Organization | Role | Years |
|---|---|---|
| PhRMA (Pharmaceutical Research and Manufacturers of America) | Board Director | Current |
Fixed Compensation
| Metric | 2023 | 2024 |
|---|---|---|
| Base Salary ($) | $64,615 | $1,050,000 |
| Target Bonus (% of Base) | n/a | 110% |
| Actual Annual Cash Incentive ($) | n/a | $1,501,500 |
Performance Compensation
Short‑Term Annual Cash Incentive (FY2024)
| Metric | Weight | Target | Actual | Payout Scale Outcome |
|---|---|---|---|---|
| Total Revenue ($M) | 25% | $2,810 | $2,841 (FX‑adjusted) | 26% funding contribution |
| Non‑GAAP Diluted EPS ($) | 25% | $3.15 | $3.29 (adjusted) | 32% funding contribution |
| Development Goals | 50% | Multiple program targets (see VOXZOGO/ROCTAVIAN and PoC criteria) | Mixed; sub‑components 100–200% achievements | 72% funding contribution |
| Total Funding vs Target | — | — | — | 130% overall payout |
Key development goal achievements included 200% for VOXZOGO milestones (protocol acceptances, first patient dosed, site activations), 100% for ROCTAVIAN interim data checks, and proof‑of‑concept progress across pipeline programs (BMN 331, BMN 349, BMN 293), consistent with strategic priorities .
Long‑Term Incentives (FY2024 grant mix and details)
| Vehicle | Weight | Grant Date | Quantity | Terms | Grant Date Fair Value ($) |
|---|---|---|---|---|---|
| Performance RSUs – Relative TSR | 60% of PBRSUs | 3/15/2024 | 47,200 target | 3‑yr performance; vest on 3rd anniversary; multiplier 50–200%; target set at 55th percentile; capped at 100% if absolute TSR negative | $5,102,320 |
| Performance RSUs – Strategic Goals | 40% of PBRSUs | 3/15/2024 | 31,470 target | 3‑yr performance on IND/CTA submissions, PoC counts, LCM progress; vest on 3rd anniversary | $2,639,389 |
| Service‑based RSUs | 25% of LTI | 3/15/2024 | 32,780 | 4‑yr ratable vest (annual) | $2,749,259 |
| Stock Options | 15% of LTI | 3/15/2024 | 44,050 | 10‑yr term; 12/48ths vest 1‑yr, then 1/48th monthly; strike $83.87 | $1,661,566 |
Three‑year performance awards earned for the 2022–2024 period paid above target on Core Operating Margin (169.7%) and Strategic Goals (175%) and at 100% for Relative TSR (capped due to negative TSR), evidencing strong multi‑year execution; these outcomes define the company’s LTIP performance framework in which the CEO participates post‑appointment .
Multi‑Year Compensation (NEO disclosure)
| Component ($) | 2023 | 2024 |
|---|---|---|
| Salary | $64,615 | $1,050,000 |
| Stock Awards | $10,662,587 | $10,490,968 |
| Option Awards | $6,207,816 | $1,661,566 |
| Non‑Equity Incentive Plan Comp | — | $1,501,500 |
| All Other Compensation | $40,218 | $149,571 |
| Total | $17,875,236 | $14,853,605 |
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Total Beneficial Ownership (shares) | 92,069 (18,633 direct; 73,436 within 60 days via options/RSUs) |
| Ownership as % of Outstanding | ≈0.048% (92,069 / 190,803,610) |
| Unvested Service RSUs (as of 12/31/2024) | 82,743 from 12/1/2023 grant; plus 32,780 from 3/15/2024 grant |
| Unearned Performance RSUs (targets) | 47,200 TSR; 31,470 Strategic Goals (3/15/2024 grants) |
| Options Outstanding | 12/1/2023: 37,632 exercisable; 112,897 unexercisable @ $92.42 (exp. 11/30/2033). 3/15/2024: 44,050 unexercisable @ $83.87 (exp. 3/14/2034) |
| Ownership Guidelines | CEO required to hold 6x base salary; new officers have three years to comply |
| Hedging/Pledging | Prohibited for directors and employees; anti‑hedging/anti‑pledging policy in force |
| Insider Trading Controls | Designated insiders require pre‑clearance; blackout periods apply; 10b5‑1 plans permitted |
Employment Terms
| Provision | CEO Terms |
|---|---|
| Start date; current role tenure | December 1, 2023 (CEO and director) |
| Severance (involuntary, no cause) | 150% of current annual base salary + target annual cash incentive; pro‑rated target incentive; 12 months additional vesting of unvested service RSUs and target PBRSUs; COBRA 18 months; outplacement/legal support |
| Change‑in‑Control (CIC) termination | 200% of base salary + target incentive; pro‑rated target incentive; 100% vesting of all unvested service RSUs and target PBRSUs; COBRA 24 months; outplacement/legal support |
| CIC without termination | CEO awards vest only on “double trigger” (both CIC and qualifying termination) |
| Excise tax treatment | “Best net” cutback—no gross‑ups; company selects full payout or reduction to avoid 280G excise tax, whichever yields greater after‑tax value |
| Clawbacks | Dodd‑Frank/Nasdaq‑compliant clawback adopted Oct 4, 2023; historical clawback maintained |
Board Governance
- Board service: Director since December 2023; not independent; all other current directors/nominees except Mr. Hardy are independent .
- Roles/committees: Board separated Chair and CEO effective December 2023; independent Chair (Richard A. Meier); Hardy does not serve on Board committees, which are fully independent (Audit, Compensation, CGN, Science & Technology, Transactions & Strategy) .
- Attendance: The Board held 10 meetings in FY2024; each director attended at least 75% of applicable meetings; independent director executive sessions are held regularly .
- Director compensation (dual role): Employee director receives no separate director fees or equity; Hardy’s compensation is solely as CEO .
Director Compensation (for dual‑role context)
| Item | Amount/Policy |
|---|---|
| CEO as Director | No separate compensation for Board service |
| Non‑Employee Directors (policy) | Annual RSU grant value $400,000; cash retainers vary by committee roles; ownership guideline raised to 5x cash retainer |
Performance & Track Record
- Operating results: FY2024 total revenues $2.85B (+18% YoY); VOXZOGO revenue $735M (+56% YoY) amid portfolio focus and organizational restructuring into three business units .
- STIP achievements: 130% payout vs target driven by revenue/EPS outperformance and development milestones across VOXZOGO, ROCTAVIAN, and pipeline programs .
- LTIP outcomes (company-wide, 2022–2024): Relative TSR 71st percentile (capped at 100%); Core Operating Margin 169.7%; Strategic Goals 175% .
- Pay‑versus‑performance context: 2024 CEO “total” reported compensation $14.85M; CAP disclosures show alignment mechanisms; TSR value of a fixed $100 investment at $77.74 for 2024 under SEC framework .
Compensation Structure Analysis
- Mix and risk posture: Approximately 92% of CEO’s 2024 direct compensation was variable/at‑risk; 82% delivered via long‑term incentives; increased performance equity emphasis vs peers .
- STIP design shifts: Financial goal weighting increased to 50% in 2024 (from 40% in 2023) to sharpen focus on revenue growth and profitability; development goals retained robust stretch tiers .
- LTIP design shifts: 2024 eliminated financial metric PBRSUs due to strategic review; increased Relative TSR weight and higher thresholds (target 55th percentile); 2025 adds five‑year innovation revenue award and three‑year revenue CAGR PBRSUs, plus longer five‑year Relative TSR for CEO .
- Governance and investor feedback: 93% Say‑on‑Pay support; changes explicitly reflect shareholder input on long‑term value linkage and TSR weighting .
Compensation Peer Group (used for benchmarking)
Alnylam, BeiGene, Biogen, Exelixis, Horizon, Incyte, Ionis, Jazz, Neurocrine, Regeneron, Seagen, United Therapeutics, Vertex .
Say‑On‑Pay & Shareholder Feedback
- Advisory approval of NEO compensation: 93% support in most recent vote; program adjusted to tighten pay‑for‑performance linkage per outreach .
- Stockholder engagement: Outreach covered ~65% of outstanding shares; topics included strategy, leadership transitions, governance, and compensation .
Risk Indicators & Red Flags
- Hedging/pledging: Prohibited for all directors/employees, reducing misalignment/credit risk .
- Clawback: Robust compliance with SEC/Nasdaq rules; recovery mechanisms for restatements .
- Excise taxes: No gross‑ups; “best net” cutback policy favored by investors .
- Aircraft perquisites removed; security‑related ground transport for CEO disclosed and costed; perqs otherwise limited .
Equity Plan Supply/Dilution (context for trading/overhang)
- Amended 2017 Equity Plan proposal seeks +8,000,000 shares; total reserved would be 64,380,015; expected total dilution ~16.6% if approved; three‑year average burn rate 1.8% (below peer medians) .
- As of March 24, 2025: 191,754,170 shares outstanding; remaining pool across plans ~9.5M shares; outstanding options ~6.26M (WAEP $84.89, 5.73 years); outstanding unvested RSUs ~8.01M .
Compliance & Policies
- Stock ownership guidelines: CEO 6x base salary; directors 5x cash retainer; new appointees have three years to comply .
- Insider trading policy: Pre‑clearance and blackout requirements for designated insiders; 10b5‑1 plans allowed .
- Majority voting standard: Adopted in February 2025 for uncontested director elections; irrevocable resignations required upon failure to receive majority of votes cast .
Investment Implications
- Alignment: High variable pay and increased multi‑year performance weighting (TSR, innovation) align incentives with shareholder value creation; ownership guideline at 6x base strengthens long‑term alignment and reduces liquidity‑driven selling risk .
- Overhang/vesting: Material unvested RSUs and options in CEO’s package (and organization‑wide RSUs/options) imply periodic supply from vesting, but anti‑hedging/pledging and pre‑clearance controls mitigate opportunistic selling; CEO’s awards vest primarily on performance (PBRSUs) and standard schedules (RSUs/options) .
- Retention and CIC discipline: Double‑trigger CIC for CEO, robust severance with “best net” cutback, and extended COBRA/outplacement support reduce forced turnover risk and deter value‑destructive transactional timing; absence of tax gross‑ups is governance‑friendly .
- Program trajectory: The 2025 introduction of five‑year innovation and revenue CAGR PBRSUs should heighten focus on durable growth beyond 2024’s transitional year, but executing innovation/revenue goals will be key to future payouts given TSR caps and higher thresholds .