Sung H. Lee
CYTOKINETICSAbout Sung H. Lee
Executive Vice President and Chief Financial Officer of Cytokinetics since May 8, 2024; age 54. Education: B.A., University of California, Irvine; Master of Business Taxation (MBT), University of Southern California . Company performance context: 2024 corporate achievement assessed at 110% under the NEIP framework ; cumulative TSR value of a $100 investment was $443 at year-end 2024 vs $787 in 2023, with net loss increasing to $587,118k in 2024 . CYTK remains pre-commercial; performance metrics and incentive design emphasize regulatory milestones, financing, and development progress .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Vir Biotechnology, Inc. | Chief Financial Officer | Mar 2023–May 2024 | Led public-company finance through immunology portfolio; transitioned to CYTK CFO in May 2024 . |
| MorphoSys AG | Chief Financial Officer and Management Board Member | Feb 2021–Mar 2023 | Oversaw finance at a commercial-stage biopharma; board-level responsibilities in Germany . |
| Sangamo Therapeutics, Inc. | EVP & CFO | Oct 2019–Feb 2021 | Led finance and capital allocation in genetic medicines . |
| Gilead Sciences, Inc. | SVP FP&A & IR (2019); VP FP&A & IR (2018–2019); VP IR (2016–2018); Sr. Dir IR (2013–2016); Head Europe FP&A (2010–2013); Head R&D FP&A (2006–2010) | 2006–2019 | Built investor relations function, enterprise FP&A, and global finance capabilities at large-cap biopharma . |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| MorphoSys AG | Management Board Member | 2021–2023 | German two-tier governance structure; executive board responsibilities . |
Fixed Compensation
| Component | 2024 Value | Terms |
|---|---|---|
| Base Salary | $550,000 | Per offer letter, effective May 2024 . |
| Target Bonus % of Salary | 45% | 75% corporate goals / 25% individual goals . |
| Sign-on Bonus | $80,000 | Subject to clawback if resignation/termination for cause within 12 months . |
| 2024 Salary Paid | $550,000 | As reported in 2025 proxy . |
| All Other Compensation | $86,410 | 401(k) match, gym, technology reimbursement . |
Performance Compensation
Annual NEIP (Cash Incentive)
| Metric | Weighting | Target | Actual | Payout | Notes |
|---|---|---|---|---|---|
| Corporate Achievement | 75% of NEIP | 100% | 110% | Pro-rated in 2025 payout | CYTK corporate achievement for 2024 set at 110% . |
| Individual Achievement (Lee) | 25% of NEIP | 100% | 110% | Pro-rated in 2025 payout | Individual performance level for Lee set at 110% . |
| 2024 NEIP Amount Paid (Mar 2025) | — | — | — | $177,522 | Pro-rated for employment starting May 2024 . |
Equity Awards (Grant mix and vesting)
| Award Type | 2024 Grant Value | Units Granted | Vesting Schedule | Notes |
|---|---|---|---|---|
| RSUs (Initial) | $1,682,500 | 34,684 | 40% at 1st anniversary; 40% at 2nd; 20% at 3rd (grant date May 31, 2024) | Per offer letter and proxy grants table . |
| Stock Options (Initial) | $1,682,500 (BSV) | 53,417 | 25% at 1st anniversary; remaining 75% monthly over 36 months; strike $48.51 | Per offer letter; options granted 5/31/2024 at $48.51 . |
| PSUs – Milestone I | $835,003 target | 4,303 (earned portion at 12/31/24) | 25% vested Dec 2024; 25% vest Dec 2025 | Submission/acceptance met; priority review not granted → 50% forfeited, 50% earned and split vest . |
| PSUs – Milestone II | $835,003 target | 17,213 (at-risk) | If achieved, 50% vest at certification; 50% 1-year later | Target: FDA approval by Q3’25; REMS qualitative test; remained capable of satisfaction at 12/31/24 . |
| LTI Mix Policy (2024) | — | — | 40% RSUs / 30% PSUs / 30% Options | Monetary-value based grants converted at grant price/Black-Scholes . |
Outstanding Equity (ownership pressure and timing)
| As of | RSUs Unvested (units, $) | PSUs Unvested/Unearned (units, $) | Options Unexercisable (units; strike) |
|---|---|---|---|
| 12/31/2024 | 34,684; $1,631,535 | Milestone I: 4,303; $202,413. Milestone II: 17,213; $809,700 | 53,417 @ $48.51 |
| 3/31/2025 | RSUs: 67,371 | PSUs: 21,516 | Options: 101,914 |
Equity Ownership & Alignment
| Item | Data |
|---|---|
| Beneficial Ownership (Feb 28, 2025) | 2,767 shares; no options exercisable within 60 days . |
| Ownership Guidelines | Executives required to hold 1.0–1.5x salary in stock/RSUs; retain 100% of net shares until guideline met . |
| Hedging/Pledging | Prohibited for officers/directors; no pledging allowed . |
Employment Terms
| Term | Detail |
|---|---|
| Employment Start | May 8, 2024; at-will . |
| Severance Plan | Double-trigger change-in-control benefits: 18 months salary continuation; lump-sum target bonus; full equity acceleration; 18 months benefits; 280G cutback (no gross-up) . |
| Good Reason / Cause | Definitions include material reductions/relocations; misconduct/failure to perform; per proxy . |
| Indemnification | Standard indemnification agreement for officers . |
| Clawback | Incentive Compensation Recoupment Policy compliant with SEC/Nasdaq Rule 10D-1 . |
Estimated CIC Economics (illustrative as of 12/31/2024)
| Component | Amount |
|---|---|
| Salary Continuation | $825,000 . |
| Bonus (Target) | $247,500 . |
| Equity Acceleration (RSUs/PSUs) | $2,643,648 (options $0 given strike > market) . |
| Benefits Continuation | $104,478 . |
| Total | $3,820,626 . |
Performance & Track Record
- Finance execution: CYTK raised ~$563.2m net in May 2024 via underwritten equity and $50m concurrent private placement to fund aficamten launch readiness and pipeline; also established a $500m ATM facility in Feb 2025 (unused as of Mar 31, 2025) .
- NEIP corporate achievement set at 110% for 2024, reflecting progress in R&D, financing objectives and research goals; Lee’s individual performance assessed at 110% in 2024 .
Investment Implications
- Alignment and retention: Significant unvested RSUs/PSUs and options (all out-of-the-money at 12/31/24) plus double-trigger CIC terms reduce voluntary departure risk; PSUs tie pay to regulatory success (aficamten approval and REMS quality), strengthening pay-for-performance .
- Near-term supply considerations: RSU tranches and earned Milestone I PSUs vest on anniversary dates (Dec 2025 for remaining Milestone I; May 2025 and May 2026 for RSUs), potentially triggering withholding-related sales; actual selling constrained by 10b5-1 policy and insider trading windows .
- Ownership: Direct beneficial ownership is low (2,767 shares), with compliance to ownership guidelines achieved over time via vesting; hedging/pledging prohibited, limiting misalignment risk .
- Execution focus: CFO goals emphasize capital structure (2027 converts de-risking), budgeting to support commercialization, and investor communications—critical as aficamten approaches regulatory decisions and launch .