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Alex Kelly

Chief Financial Officer at PRECISION BIOSCIENCES
Executive

About Alex Kelly

Alex Kelly, 58, is Chief Financial Officer of Precision BioSciences (since May 2021; interim CFO Jan–May 2021; Chief Corporate Affairs Officer Oct 2020–Jan 2021). He previously held senior roles at Allergan/Actavis and Forest Laboratories, and holds a Bachelor of Science in Pharmacy from Purdue University . Company pay-versus-performance disclosures show 2024 net income of $7.2M vs. a $61.3M loss in 2023, and a two-year TSR value of $10.67 on a hypothetical $100 invested from 12/31/2022, indicating recent profitability improvement amid sector-driven share performance .

Past Roles

OrganizationRoleYearsStrategic Impact
Allergan plcEVP, Corporate Affairs & Chief Communications Officer; President, The Allergan Foundation2015–2020 Led messaging shaping culture; supported major transformations incl. AbbVie merger
Actavis plc (now Allergan)SVP, Chief Integration OfficerNot disclosed Led back-to-back integrations of Forest Laboratories and Allergan
Forest LaboratoriesSVP, Chief Communications Officer, Public Affairs & IRNot disclosed Built consolidated corp comms/IR; led integration efforts
Bausch + Lomb; Merck; Schering-Plough; Novartis; Pharmacia; Pharmacia & UpjohnVarious senior rolesNot disclosed Broad biopharma operating and communications leadership

External Roles

OrganizationRoleYearsStrategic Impact
HealthCare Institute of New JerseyChairNot disclosed Industry leadership and advocacy
California Life Sciences AssociationVice ChairNot disclosed Industry network and policy engagement

Fixed Compensation

YearBase Salary ($)Target Bonus (% of Salary)Actual Bonus Paid ($)
2023461,000 40% 184,400
2024461,000 40% 191,776

Notes:

  • No automatic salary increases; 2024 pay held flat for fiscal discipline .

Performance Compensation

Annual Bonus Structure (2024)

ComponentWeightingCorporate AttainmentTargetActual Payout
Corporate goals80% 105% (reduced from 120% based on stock price) 40% of salary 191,776 (paid Jan 2025)
Individual goals20% (role-specific) Not disclosed40% of salary Included in total above

Corporate goals included CTA submissions/approvals and first patient dosed in PBGENE-HBV ahead of schedule; plus two BD transactions for non-core CAR-T assets .

Equity Awards (2024 RSUs)

Vesting Commencement DateShares GrantedGrant-Date Fair Value ($)Weighted-Average Fair Value/Share ($)Vesting Schedule
1/20/2024121,430 1,222,005 10.06 Equal installments on each of first three anniversaries

Outstanding RSUs at 12/31/2024:

RSUs Not VestedMarket Value at 12/29/2024 ($3.81 close)
41,705 158,896
79,725 303,752

Stock Options (Outstanding at 12/31/2024)

Vesting CommencementExercisableUnexercisableStrike ($)Expiration
10/05/20207,131 189.30 10/29/2030
06/07/20212,050 293 340.20 06/06/2031
06/07/20213,417 488 340.20 06/06/2031
03/03/20225,575 2,534 122.40 03/02/2032

Notes:

  • Options vest 25% at year 1, then quarterly over 36 months .

Equity Ownership & Alignment

ItemDetail
Total beneficial ownership105,325 shares; 1.0% of outstanding
Composition (within 60 days of 3/20/2025)86,256 common shares; 19,069 options exercisable
Unvested RSUs (12/31/2024)41,705 and 79,725 (market values $158,896 and $303,752, respectively, at $3.81 close)
HedgingProhibited for directors, officers, employees (e.g., collars, swaps, exchange funds)
PledgingNo pledging policy disclosure; no pledges identified in proxy ownership tables
Ownership guidelinesCorporate Governance Guidelines include “Stock ownership,” but specific multiples/requirements not disclosed
Insider purchasesExecutives (PEO and NEOs) purchased 17,501 shares in May 2024 via non-brokered private placement at $12.00, above market; aggregate $210,012 (individual allocations not disclosed)

Employment Terms

ProvisionTerms
Employment statusAt-will; terminable by either party with 30 days’ notice
Severance (termination without cause or good reason)12 months base salary + 1x target bonus (lump sum), plus up to 12 months COBRA reimbursement
Change-in-control (double trigger: termination within 12 months post-CoC or 3 months pre-CoC)18 months base salary + 1.5x target bonus (lump sum), up to 18 months COBRA reimbursement, and accelerated vesting of all unvested time-based equity
Non-compete / non-solicit1 year post-termination (Amoroso 18 months if terminated within 12 months post-CoC; Kelly’s duration 1 year)
Clawback policyRecovery of erroneously awarded incentive compensation within 3 completed fiscal years preceding a required accounting restatement; committee discretion on recovery method
Anti-hedgingHedging transactions prohibited; policy filed as exhibit to 2024 Form 10-K
Perquisites401(k) matching ($11,513) and supplemental disability insurance premiums ($7,093) in 2024

Compliance/filings:

  • Delinquent Section 16(a) reports: delayed Form 4 filings on May 3, 2024 for multiple insiders including Alex Kelly to report delayed settlement of March 3, 2022 RSUs (committee-approved) .

Investment Implications

  • Pay-for-performance alignment: 2024 bonus structure weighted 80% corporate/20% individual with corporate attainment reduced from 120% to 105% in recognition of share price, signaling discipline in linking cash outcomes to both operations and market realities . RSUs vest over three years, supporting retention and long-term alignment .
  • Retention and CoC protections: Double-trigger CoC severance (18 months base + 1.5x target bonus, COBRA, time-based equity acceleration) provides standard biotech-market protections without excessive multiples; base severance at 12 months + 1x target bonus is moderate, suggesting reasonable retention incentives .
  • Selling pressure: Significant unvested RSUs from 2024 may create periodic delivery events; anti-hedging policy reduces misalignment risk; no pledging disclosures found. The May 2024 insider private placement at a premium indicates confidence, though individual allocations for Kelly were not disclosed .
  • Governance and risk: Clawback policy compliant with SEC rules and 3-year lookback; delayed Form 4 settlements were disclosed, reducing compliance overhang .
  • Performance context: Company swung to positive net income in 2024 ($7.2M) vs. 2023 loss, while TSR tracked sector peers, implying macro/gene-editing cohort effects dominate stock outcomes; compensation “CAP” tied closely to stock price volatility, a common dynamic for pre-commercial biotech .

Say-on-Pay and benchmarking:

  • First say-on-pay in 2025; Board recommends “FOR” and annual frequency; Aon engaged for executive comp peer benchmarking and trends, with disclosed independence and limited conflicts (D&O insurance brokerage by an Aon subsidiary approved by Board) .