Arye Weigensberg
About Arye Weigensberg
Senior Vice President, Head of Research & Development at Cronos Group since August 2022; previously served as interim Head of R&D from October 2021 and was General Manager & VP, Research and Technology at Cronos Research Labs before that. He holds a B.Comm. in Marketing and International Business from Concordia University’s John Molson School of Business and is 42 years old . Prior roles include CEO of Altria Israel Ltd. (an Altria R&D hub) and Director of Marketing & Brand Management at Green Smoke; earlier brand roles on Manischewitz, Lawry’s, Ragu, Knorr, and Country Crock . Company performance context (FY2024): Cronos Net Revenue $111.9m (non-GAAP), Adjusted EBITDA $(34.9)m, Net income $40.0m; 5‑year TSR proxy indicator shows $26.34 value of a $100 investment (vs peer group $13.91) as of 12/31/2024 .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Cronos Research Labs | General Manager & VP, Research and Technology | Not disclosed | Built rare cannabinoid research capability and scope prior to appointment as Head of R&D . |
| Cronos Group | Interim Head of Research & Development | Oct 2021 – Aug 2022 | Ensured continuity of R&D leadership following CIO retirement . |
| Cronos Group | SVP, Head of Research & Development | Aug 2022 – Present | Leads innovation program; oversees product development, research, and technology functions . |
External Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Altria Israel Ltd. | Chief Executive Officer | Not disclosed | Led Altria’s R&D innovation hub; relevant to Cronos innovation strategy . |
| Green Smoke (acquired by Altria) | Director of Marketing & Brand Management | Not disclosed | Drove marketing/brand initiatives; entry point to Altria ecosystem . |
| Various CPG brands (Manischewitz, Lawry’s, Ragu, Knorr, Country Crock) | Brand management roles | Not disclosed | Consumer/brand expertise applicable to product commercialization . |
Fixed Compensation
- The 2025 proxy discloses detailed compensation only for Named Executive Officers (NEOs): Michael Gorenstein, James Holm, Anna Shlimak, Jeffrey Jacobson, and Shannon Buggy; Mr. Weigensberg is not listed among NEOs for 2024, so his base salary and cash compensation are not disclosed in the filing .
Performance Compensation
Company STIC framework and 2024 outcomes (applied to executives/NEOs):
- Structure: 60% Business Performance (Cronos Net Revenue and Cronos Adjusted EBITDA, equally weighted), 40% Individual Performance; maximum payout capped at 142% of target .
- 2024 Business Performance Rating: 138.2% (quantitative result; no qualitative adjustment) .
| Metric (2024) | Threshold ($m) | Target ($m) | Maximum ($m) | Actual ($m) | Measure Rating | Component Rating |
|---|---|---|---|---|---|---|
| Cronos Net Revenue (non-GAAP) | 74.1 | 98.8 | 123.6 | 111.9 | 126.4% | 138.2% |
| Cronos Adjusted EBITDA (non-GAAP) | (67.5) | (54.0) | (40.5) | (38.7) | 150.0% | 138.2% |
Long-term incentives (company practice):
- Annual executive LTIs delivered as RSUs vesting ratably over three years; 2024 awards granted in March post earnings; no options granted to NEOs in 2024 .
Equity Ownership & Alignment
Beneficial ownership and awards (initial Section 16 filing):
- Form 3 (filed Aug 18, 2022, event date Aug 9, 2022): 5,505 common shares held directly; RSUs covering 38,048 shares; 2,031 options (CAD$17.68 strike; granted Aug 12, 2019; expire Aug 12, 2024; quarterly vest over four years) .
| Instrument | Amount | Key terms | Notes |
|---|---|---|---|
| Common shares (direct) | 5,505 | — | As of Form 3 filing . |
| RSUs (aggregate) | 38,048 | 1 RSU = 1 share | Multiple tranches; see vesting below . |
| Options | 2,031 | Strike C$17.68; grant 08/12/2019; expire 08/12/2024 | Vest quarterly over four years . |
RSU vesting detail (from Form 3 explanation of responses):
- 3,064 unvested RSUs: vest in substantially equal annual installments; second of three vesting dates on Dec 17, 2022 (remaining schedule per equal annual tranches) .
- 7,944 unvested RSUs: vest in substantially equal annual installments; second of three vesting dates on May 25, 2022 .
- 27,040 unvested RSUs: vest in three substantially equal annual installments beginning May 12, 2023 .
Ownership/pledging governance:
- Share ownership guidelines: 2x salary for executive officers (5x for CEO); 5 years to comply; unvested time-based RSUs count toward compliance .
- Insider Trading Policy prohibits hedging and pledging; also prohibits short sales, options, and margin purchases; limited case-by-case exemption possible for pledging with safeguards .
- Clawback policies: broad recoupment covering cash and equity incentives for covered executives since Feb 28, 2020; separate Dodd-Frank restatement recovery policy effective Dec 1, 2023 .
Employment Terms
- Role/tenure: Interim Head of R&D effective Oct 29, 2021; appointed SVP, Head of R&D in Aug 2022 (current) .
- Employment agreement specifics (salary, bonus target, severance, change-of-control) were not disclosed for Mr. Weigensberg in the 2025 proxy; the proxy details such terms for NEOs only (e.g., CEO/CFO) .
Performance & Track Record
- Innovation leadership: Oversees Cronos’ innovation program focusing on rare cannabinoids and product development, aligned to brand growth and IP creation .
- Company operating scorecard 2024: Cronos Net Revenue $111.9m (non-GAAP), Adjusted EBITDA $(34.9)m; Business Performance rating 138.2% under STIC; Net income $40.0m .
- TSR context: Value of initial $100 investment in Cronos as of 12/31/2024 was $26.34 vs peer group $13.91 (not a direct measure of his individual performance but relevant to pay-for-performance alignment environment) .
Compensation Structure Analysis
- Executive pay architecture emphasizes “at risk” incentives (STIC + RSUs), multi‑year vesting, and ownership guidelines; prohibits hedging/pledging and allows clawbacks—supporting alignment and risk controls .
- 2024 program focused on revenue and Adjusted EBITDA, with strong Business Performance outcome (138.2%), signaling emphasis on top-line growth and profitability improvements rather than solely share price .
- No disclosure of repricing or special perquisites for executives; the company states it does not reprice or backdate equity awards and does not offer excise tax gross-ups on severance .
Governance, Ownership Guidelines, and Policies (selected points)
- Ownership guidelines: 2x salary for executive officers, 5-year compliance window; unvested time-based RSUs count .
- Anti-hedging/pledging: Prohibited for Covered Personnel; limited exemption process for pledging; short sales and option transactions also prohibited .
- Clawback/restatement recovery: Broad compensation recovery and separate Dodd-Frank compliant policy .
Investment Implications
- Alignment: RSU-heavy LTI, multi-year vesting, ownership guidelines, and anti‑hedging/pledging policies indicate strong structural alignment with shareholders and reduced risk of hedging/pledging misalignment .
- Retention/overhang: Legacy RSU tranches (2019–2023 grants) created predictable vesting through 2025, which can contribute to periodic settlement-related supply but also serve as retention hooks; options from 2019 matured/expired Aug 2024, removing potential option-related overhang at higher strikes (C$17.68) .
- Pay-for-performance context: Company-level incentives tied to Net Revenue and Adjusted EBITDA (and strong 2024 Business Performance rating) suggest R&D leadership is implicitly evaluated on innovation commercialization and margin impact—core to Mr. Weigensberg’s remit .
- Disclosure limits: As a non‑NEO, his cash pay and severance/CoC terms are not disclosed, introducing some opacity to precise incentive magnitudes and exit economics; monitor future proxies and any Item 5.02 8‑Ks for changes in role or compensatory arrangements .