Stephen Betz
About Stephen Betz
Stephen F. Betz, Ph.D., is a co‑founder of Crinetics and has served as Chief Scientific Officer since October 2021 (previously VP of Biology from December 2009 to October 2021). He is 59, holds a B.S. in chemistry (University of Delaware) and a Ph.D. in chemistry (UNC Chapel Hill), and previously held R&D leadership roles at Neurocrine, GeneFormatics, and Abbott Laboratories . Under the executive team’s 2024 performance plan, Crinetics achieved major milestones including positive PATHFNDR‑2 results, FDA acceptance of the paltusotine NDA with a September 25, 2025 PDUFA date, and pipeline progress (leading to a 115% corporate achievement score) . On the Q2 2025 call, Betz noted IND‑enabling work for TSH antagonist and SST3 agonist programs targeting year‑end 2025 submissions .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Crinetics Pharmaceuticals | Vice President of Biology | 2009–2021 | Built core biology function supporting discovery of oral nonpeptide GPCR therapeutics . |
| Neurocrine Biosciences | Director of Endocrinology and Metabolism | 2003–2009 | Led endocrine discovery programs including GnRH antagonists . |
| GeneFormatics | Laboratory Lead | 2001–2003 | Led laboratory efforts in structural/functional biology . |
| Abbott Laboratories | Research Nuclear Magnetic Resonance Group (discovery, assay development, screening) | 1996–2000 | Structure‑guided drug design and screening infrastructure . |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| Radionetics Oncology | Scientific Advisory Board Member | Since Oct 2021 | Radiotherapeutics in oncology; service concurrent with CSO role at Crinetics . |
Fixed Compensation
- Base salary and target bonus
- 2024 base salary approved: $495,000 (effective March 1, 2024) .
- 2024 target bonus: 40% of year‑end base salary; increased to 45% for 2025 for non‑CEO NEOs .
- 2024 actual salary paid to Betz: $491,667; 2024 401(k) match: $3,000 .
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Salary ($) | 453,633 | 471,927 | 491,667 |
| Stock Awards ($) | 330,330 | 463,504 | 1,000,730 |
| Option Awards ($) | 1,131,630 | 1,360,700 | 2,407,290 |
| Non‑Equity Incentive Plan Compensation ($) | 161,948 | 197,737 | 221,250 |
| All Other Compensation ($) | 3,000 | 3,000 | 3,000 |
| Total ($) | 2,080,541 | 2,496,868 | 4,123,937 |
| Base/Bonus Terms | 2024 | 2025 |
|---|---|---|
| Base Salary (approved) | $495,000 | — |
| Target Bonus % of Salary | 40% | 45% (approved Feb 2025) |
Performance Compensation
- Annual cash incentive (2024)
- Program design: Corporate goals 75% weighting for Betz; individual goals 25%. Corporate performance certified at 115% of target; Betz’s individual achievement assessed at 105% .
- Payout: $221,250 to Betz for 2024 .
- 2025 change: Annual incentive payouts capped at 150% of target .
| Metric (2024) | Weighting | Target | Actual/Achievement | Payout Impact | Vesting |
|---|---|---|---|---|---|
| Corporate: Advance clinical development of paltusotine in acromegaly | 45% | 100% | Weighted perf. 42% | Contributes to 115% corporate factor | N/A |
| Corporate: Paltusotine carcinoid syndrome | 20% | 100% | Weighted perf. 15% | Included in 115% | N/A |
| Corporate: Advance atumelnant | 20% | 100% | Weighted perf. 18% | Included in 115% | N/A |
| Corporate: Research & Development | 20% | 100% | Weighted perf. 20% | Included in 115% | N/A |
| Corporate: Corporate/financial | 15% | 100% | Weighted perf. 20% | Included in 115% | N/A |
| Individual (Betz) | 25% | 100% | 105% | Raises personal payout factor | N/A |
| Betz target bonus (2024) | 40% of salary | $196,667 | — | Actual $221,250 | N/A |
- 2024 equity grants (time‑based; no PSUs disclosed)
- Mix and vesting: ~70% options, ~30% RSUs; options vest monthly over 4 years; RSUs vest 25% annually on Mar 15, 2025–2028; option term 10 years; exercise price at grant‑date close .
| Award Type | Grant Date | Shares/Units | Exercise Price | Vesting Schedule | Term | Grant Date Fair Value |
|---|---|---|---|---|---|---|
| Stock Options (Betz) | 3/4/2024 | 87,000 | $43.51/sh | Monthly over 4 years from grant | 10 years | $2,407,290 |
| RSUs (Betz) | 3/4/2024 | 23,000 | — | 25% on 3/15/2025–2028 | — | $1,000,730 |
Equity Ownership & Alignment
- Beneficial ownership (as of April 14, 2025)
- Total beneficial ownership: 750,810 shares; <1% of outstanding .
- Includes 108,588 common shares and 642,222 options exercisable within 60 days .
- Shares outstanding: 93,629,118 (for context) .
| Item | Amount |
|---|---|
| Total beneficial ownership (shares) | 750,810 |
| Ownership as % of outstanding | <1% |
| Common shares owned | 108,588 |
| Options exercisable within 60 days | 642,222 |
| Pledging/Hedging | Prohibited for officers/directors (no pledging, hedging, margin, short sales, or derivatives) |
| Ownership guidelines (adopted 2/20/2025) | Designated executive officers: 1x base salary; must retain 50% of net shares until compliant; 5‑year compliance window |
Note: The proxy does not disclose any shares pledged by Betz; pledging is prohibited by policy .
Employment Terms
| Trigger | Cash Severance | Bonus | Health/COBRA | Equity Vesting | Notes |
|---|---|---|---|---|---|
| Termination by company without cause or by Betz for good reason (not in connection with change in control) | 12 months base salary (lump sum ~60 days post‑termination) | — | Up to 12 months coverage | Automatic acceleration for the number of stock awards that would have vested over the 12 months post‑termination | Subject to release and covenant compliance |
| Termination by company without cause or by Betz for good reason within 12 months after a change in control | 12 months base salary (lump sum ~60 days) | Target annual bonus (lump sum ~60 days) | Up to 12 months coverage | 100% acceleration | Double‑trigger cash; equity fully accelerates on termination within 12 months post‑CoC |
| Change in control—continued employment | — | — | — | 100% acceleration on the first anniversary of the closing if still employed (if earlier termination without cause/for good reason occurs, acceleration at that time) | “Modified double‑trigger” equity with 1‑year anniversary fallback |
| Plan‑level if awards not assumed in CoC | — | — | — | 100% vesting acceleration if awards are not assumed | 2018 Plan change‑in‑control treatment |
Additional policies:
- Clawback policy conforming to SEC/Nasdaq for restatements (recoup erroneously awarded incentive comp) .
- Hedging/pledging prohibited; blackout and pre‑clearance; trading under pre‑approved Rule 10b5‑1 plans permitted .
- No post‑employment tax gross‑ups; limited perquisites; standard 401(k) with $3,000 match; Deferred Compensation Plan adopted April 1, 2024 for elective deferrals (NEOs eligible) .
Compensation Structure Analysis
- Pay mix and risk: Long‑term equity dominates and skews to options (70% options / 30% RSUs in 2024), heightening sensitivity to stock performance while retaining with RSUs .
- Annual incentive rigor: 2024 corporate goals were set at challenging levels; corporate performance certified at 115% with individual differentiation; 2025 added a 150% payout cap .
- Governance guardrails: Stock ownership guidelines (1x salary for designated executives), clawback, and strict anti‑hedging/pledging policies strengthen alignment .
- Shareholder feedback: 2024 say‑on‑pay approval ~97.3%, indicating broad investor support for the program .
- Peer benchmarking: Committee targets cash near 50th percentile and equity value between 50th–75th percentile vs a defined 2024 peer group of Phase III/pre‑commercial biopharma .
Performance & Track Record
- 2024/early 2025 highlights tied to incentives and R&D leadership:
- Positive PATHFNDR‑2 results; FDA accepted paltusotine NDA with a September 25, 2025 PDUFA date .
- Phase 2 carcinoid syndrome data supporting EOP2 meeting; Phase 3 CAREFNDR trial initiated .
- Discovery pipeline advanced with multiple development candidates and IND‑enabling toxicology progress .
- Betz indicated IND‑enabling work for TSH antagonist and SST3 agonist targeting end‑2025 submissions .
Compensation Committee Analysis
- Committee composition (2024): Stephanie S. Okey (Chair), Matthew K. Fust, Wendell Wierenga; all independent and non‑employees .
- Consultants: Aon (early 2024) and Pearl Meyer (from August 2024) advised on philosophy, peer group, and program design .
- Peer group (2024): Includes companies such as Akero, Cytokinetics, IDEAYA, Immunovant, Vaxcyte, Viking, Xenon; selected for size, stage (Phase III), and sector fit .
Equity Ownership & Alignment (Detail)
| Category | Detail |
|---|---|
| Beneficial ownership (Betz) | 750,810 shares; <1% of outstanding |
| Composition | 108,588 common; 642,222 options exercisable within 60 days |
| Policy | Hedging/pledging prohibited; blackouts and pre‑clearance apply |
| Ownership guidelines | 1x base salary for designated executives; 5 years to comply; 50% net share retention until compliant |
Employment Terms (Detail)
- See Employment Terms table above for severance, CoC economics, and acceleration mechanics .
Investment Implications
- Pay‑for‑performance alignment: A substantial portion of Betz’s compensation is equity‑based and option‑heavy (70% options/30% RSUs in 2024), aligning upside with long‑term share appreciation while retaining talent via time‑based RSUs .
- Incentive rigor and outcomes: 2024 corporate achievement at 115% and Betz’s 105% individual factor yielded a measured bonus ($221,250), reflecting milestone execution without outsized payouts; 2025 cap further curbs upside risk .
- Retention and CoC dynamics: Severance (12 months salary; plus target bonus if CoC termination) and full equity acceleration upon qualifying CoC events (or 1‑year anniversary) provide retention through strategic transitions but create potential value crystallization if a CoC occurs .
- Alignment safeguards: Prohibitions on pledging/hedging, stock ownership guidelines, and a clawback policy mitigate governance risk; strong 2024 say‑on‑pay support (~97.3%) indicates investor endorsement of the structure .
- Ownership “skin in the game”: Betz holds 108,588 common shares and 642,222 vested/exercisable options within 60 days (<1% ownership overall), offering meaningful personal exposure to equity outcomes even as absolute ownership percentage remains modest for a founder‑CSO .
Sources: 2025 DEF 14A, Q2 2025 earnings call transcript, and company governance disclosures .