Alexander Schuth
Denali TherapeuticsAbout Alexander Schuth
Alexander O. Schuth, M.D., 51, is Denali Therapeutics’ Chief Operating and Financial Officer (since May 1, 2022), and Secretary; he co-founded Denali and has served as COO since March 2015 after senior business development and partnering roles at Genentech and earlier experience in investment banking at Merrill Lynch. He holds an M.D. from Charité (Humboldt University, Berlin) and an M.B.A. from Wharton . Company performance context during his recent finance leadership includes a 2024 say‑on‑pay approval of ~92.2% and TSR index values of 116.99 (2024), 123.19 (2023), and 159.64 (2022) on a $100 base .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Genentech | Head, Technology Innovation & Diagnostics Partnering | 2014–2015 | Advanced tech/diagnostics partnering enabling pipeline and platform strategy |
| Genentech | Head, Neuroscience Partnering | 2010–2014 | Led neuroscience BD, underpinning neuro portfolio growth |
| Genentech | Business Development team | 2007–2010 | BD execution across therapeutic areas |
| Genentech | R&D Finance Manager | 2005–2007 | Financial stewardship for R&D operations |
| Merrill Lynch (London) | Investment Banking Associate, ECM | 2001–2003 | Capital markets experience supporting financing acumen |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Molecular Health GmbH (private) | Director | Current | External governance and data/biopharma insights |
Fixed Compensation
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Base Salary ($) | $520,000 | $536,000 | $552,000 (effective Jan 1, 2025) |
| Target Bonus (% of base) | — | 45% | 45% |
Multi‑year NEO compensation (Alexander O. Schuth):
| Year | Salary ($) | Bonus ($) | Stock Awards ($) | Option Awards ($) | All Other Comp ($) | Total ($) |
|---|---|---|---|---|---|---|
| 2022 | $500,000 | $225,000 | $2,307,095 | $2,647,757 | $12,200 | $5,692,052 |
| 2023 | $520,000 | $269,093 | $1,136,146 | $2,230,744 | $13,200 | $4,169,183 |
| 2024 | $535,600 | $337,416 | $1,092,128 | $2,043,815 | $13,800 | $4,022,759 |
Performance Compensation
Annual Cash Incentive (2024):
| Metric | Weighting | Target | Actual | Payout | Vesting |
|---|---|---|---|---|---|
| Annual Bonus Pool (Corporate goals across high‑impact and other objectives) | N/A | 100% pool funding | Met 5/6 high‑impact goals (83%) and 15/17 other goals (88%) | Pool funded at 140%; Schuth payout $337,416 | Cash |
Program design and mapping:
| % of Goals Achieved | 25% | 40% | 50% | 60% | 70% | 80% | 90% | 100% / Major value driver |
|---|---|---|---|---|---|---|---|---|
| Pool Funding | 0% | 25% | 50% | 75% | 100% | 125% | 150% | 200% |
Equity Awards Granted (2024):
| Grant Date | Type | Shares/Units | Strike ($) | Grant Date Fair Value ($) | Expiration | Vesting |
|---|---|---|---|---|---|---|
| 01/03/2024 | Stock Options | 161,160 | 20.33 | 2,043,815 | 01/03/2034 | 25% at 1‑yr; then monthly over 36 months |
| 01/03/2024 | RSUs | 53,720 | — | 1,092,128 | — | 25% annually over 4 years |
Equity exercises/vesting (2024 realized):
| Name | Options Exercised (shares) | Value Realized on Exercise ($) | RSUs Vested (shares) | Value Realized on Vesting ($) |
|---|---|---|---|---|
| Alexander O. Schuth | 92,782 | $1,804,611 | 43,441 | $891,131 |
Equity Ownership & Alignment
| Item | Amount | Notes |
|---|---|---|
| Total Beneficial Ownership (shares) | 1,616,547 | 1.1% of outstanding |
| Ownership % of SO | 1.1% | Based on 145,227,767 SO |
| Directly owned | 244,308 | Shares held by Schuth |
| Trust holdings | 523,749 | Schuth Family Trust |
| Options exercisable within 60 days | 848,490 | Included in beneficial ownership calc |
| Unvested RSUs outstanding by grant (count; market value at 12/31/24) | 7,500; $152,850 (2021) | 15,500; $315,890 (2022) |
| 11,250; $229,275 (Aug 2022) | 30,840; $628,519 (2023) | |
| 53,720; $1,094,814 (2024) | Market value based on $20.38 at 12/31/24 | |
| Hedging/Pledging | Prohibited | Company policy bars hedging, pledging, and derivatives for all directors, officers, employees |
Employment Terms
| Term | Detail |
|---|---|
| Employment letter | Confirmatory employment letter; at‑will; no specific term |
| Base salary (effective 1/1/2025) | $552,000 |
| Target bonus (2025) | 45% of base |
| Severance (no CIC; termination without cause or good reason) | 75% of base paid over 9 months; prorated target bonus; 9 months COBRA cash equivalent (no gross‑ups) |
| Severance (double‑trigger CIC within 12 months) | 100% of base; 100% of target bonus; 12 months COBRA cash equivalent; 100% acceleration of time‑based unvested equity |
| Modeled payouts (as of 12/31/2024) | Termination without cause: $675,241 total |
| Equity acceleration (legacy awards) | Partial single‑trigger acceleration mechanics for certain pre‑plan grants upon CIC; remainder continues per schedule and may accelerate on qualifying termination |
| Clawback policy | Adopted Nov 13, 2023 under Nasdaq Dodd‑Frank rules; applies to executive incentive comp on restatements |
| Say‑on‑pay | 2024 approval ~92.2% |
| Compensation governance | Independent comp consultant (Alpine); peer group used for benchmarking; strong anti‑hedging/pledging; no tax gross‑ups |
Compensation peer group (used for 2024 decisions): Agios, Alector, Amylyx, Arcus, Axsome, Beam, BridgeBio, Cerevel, CRISPR, Cytokinetics, Intellia, Intra‑Cellular, Ionis, Karuna, Legend Biotech, Mirati, Prothena, REGENXBIO, Sage, Sarepta, Ultragenyx, Vaxcyte, Vir Biotechnology .
Performance & Track Record
Company milestones during his recent leadership:
- Initiated rolling BLA for tividenofusp alfa (DNL310) under FDA accelerated approval; potential 2025/2026 launch .
- Commenced dosing in DNL126 MPS IIIA Phase 1/2; selected to FDA START program; preliminary CSF HS reductions including normalization; study expanded .
- Continued Phase 2b LUMA (BIIB122/DNL151) with Biogen; secured $75M third‑party funding; initiated Phase 2a BEACON .
- Completed preclinical small‑molecule portfolio divestiture (Mar 1, 2024); executed $499.3M private placement (Feb 29, 2024) with common and pre‑funded warrants .
- Biogen terminated ATV:Abeta license (Jul 2024); rights reverted to Denali; not efficacy/safety related to TV platform .
Total Shareholder Return index (initial $100 investment):
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Company TSR ($) | 159.64 | 123.19 | 116.99 |
| Peer Group TSR ($; Nasdaq Biotech Index) | 113.65 | 118.87 | 118.20 |
Selected financials (context; annual):
| Metric ($USD Millions) | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Revenues | * | * | * |
| EBITDA | * | * | * |
| Net Income - (IS) | * | * | * |
*Values retrieved from S&P Global via GetFinancials.
Investment Implications
- Alignment and retention: Material equity ownership (1.1%) and substantial options exercisable within 60 days (848,490) align incentives with equity value; hedging/pledging prohibited and clawback adopted in 2023 strengthen governance .
- Pay for performance: 2024 bonus funded at 140% on strong goal execution; equity awards time‑vest over multi‑year schedules and are sensitive to stock price, reinforcing long‑term orientation .
- Selling pressure: 2024 option exercises of 92,782 shares with $1.80M intrinsic value indicate some liquidity activity; monitor future Form 4s for continued exercise/sale cadence, but pledging is disallowed .
- Change‑of‑control economics: Double‑trigger CIC severance (100% base and target bonus; 12 months COBRA; full time‑based equity acceleration) entails meaningful payout ($3.25M modeled), yet no excise tax gross‑ups; single‑trigger partial acceleration exists for legacy grants .
- Execution risk and value creation: Near‑term catalysts include the DNL310 BLA and LRRK2 program progress; financing flexibility demonstrated with the $499M 2024 PIPE; TSR lagged peer index in 2024, keeping performance scrutiny elevated .
